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Public engagement, media relations and the future of the PR industry

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Public engagement, media relations and the future of the PR industry

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Content i PUBLIC ENGAGEMENT, MEDIA RELATIONS AND THE FUTURE OF THE PR INDUSTRY by Brittney N. Sochowski A Thesis Presented to the FACULTY OF THE USC GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements for the Degree MASTER OF ARTS (STRATEGIC PUBLIC RELATIONS) May 2011 Copyright 2011 Brittney N. Sochowski ii Epigraph “We need to get back to collaborating the old-fashioned way. That is . . . thinking about how – not just how much.” – Thomas Friedman, New York Times, October 15, 2008 iii Acknowledgements Thank you to my mom, who never failed to write “THIS SUCKS” at the top of every paper I wrote in high school. She has given me the strength and commitment to get through monstrous tasks, like this, with grace and only a tiny bit of complaining. Thank you to my dad, whose unwavering support and never-ending cheering has gotten me through the seemingly impossible. And for always sending yummy snacks up with me to brighten my days. A very special thanks to my dedicated thesis committee for their guidance, insight and patience through this process. Thank you Jenn Floto, Kjerstin Thorson, and especially Burghardt Tenderich for the countless hours and dedicated commitment to making this so much more than “master’s thesis.” It was truly collaboration and an honor to work with each of one of them. iv Table of Contents Epigraph ........................................................................................................................................... ii Acknowledgements......................................................................................................................... iii List of Figures ................................................................................................................................... v Abstract ........................................................................................................................................... vi Introduction ..................................................................................................................................... 1 Research Methodology .................................................................................................................... 2 Glossary of Common Terms ............................................................................................................. 4 Background of Public Relations ....................................................................................................... 6 Evolution of the Industry ................................................................................................................. 9 Why Public Engagement ................................................................................................................ 11 Defining Public Engagement .......................................................................................................... 15 Public Engagement vs. Integrated Marketing ................................................................................ 23 Case Studies ................................................................................................................................... 24 Evolving Media Landscape: Owned Media complements Paid and Earned .................................. 31 Table 1 – Elements of Owned, Paid & Earned Media ................................................................ 32 Media Relations is Dead. Long Live Media Relations. ................................................................... 34 Where is PR headed? And what about Marketing? ....................................................................... 40 PR Pitfall ......................................................................................................................................... 43 Summary of Findings ..................................................................................................................... 45 Endnotes ........................................................................................................................................ 48 Bibliography ................................................................................................................................... 53 Appendix ........................................................................................................................................ 59 I. Interviews........................................................................................................................... 59 v List of Figures Figure 1- Long Tail Theory of Media .............................................................................................. 14 Figure 2 – Snapshot of Communications Measurement ............................................................... 44 vi Abstract Public relations has experienced monumental shifts over the past ten years resulting in a new era of communication and new expectations among consumers. With the advancements in technology and constant shifts in communication channels, its traditional scope has changed drastically. Public engagement is a phrase that attempts to define and explore this new environment of communications. This paper will explore the fundamentals behind public engagement and the current state of the PR industry. It will also examine the changes in media relations and the direction and future of the field as a whole. 1 Introduction (Scene: Inside an elevator car at a skyscraper in New York City) Man: What floor? Woman: 24, please. Man: So what’s on the 24 th floor? What do you do there? Woman: It’s a PR agency and I work on the Microsoft account. Man: Oh, great. So what does that exactly mean? What is public relations? Woman: (Pause) Um… The infamous elevator speech. They say you’re supposed to have one for major parts of your life, like your career. It’s a quick snippet, a description if you will, that’s meant to fit within the timeframe of a short elevator ride. Public relations professionals, however word savvy they are, dread the elevator speech. How can you possibly define what PR is when it changes on a minute-by-minute basis? Scholars have tried, industry folks have ideas and yet the definition of public relations remains fluid and ever-changing. Cutlip & Center defines it as a management function “that establishes and maintains mutually beneficial relationships between an organization and the publics on whom its success or failure depends. 1 ” This definition encompasses the general idea, but the part it leaves out is how these relationships are maintained. And this is where public relations gets fuzzy and is constantly evolving. To 2 understand the very essence of the field and its future, it’s critical to understand its roots, its original purpose and its evolution over the years. This thesis will answer a number of questions about the current state of the industry and its movement forward. The following hypothesis and subsequent questions will be the focus of the research and content for this paper:  Public relations experienced monumental shifts over the past ten years resulting in a new era of communication and new expectations among consumers. This new framework in which professionals are operating can best be described as public engagement.  With the significant technological advancements, changes within the industry, and, in particular, the decline of mainstream media, what is the current state of media relations?  Where is the PR profession headed and how are the roles of communication functions like marketing and advertising being affected? Research Methodology To fully understand the direction of the industry and how public engagement fits in, if at all, research focused on direct input from industry leaders and content analysis of existing ideas on the subject. 3 Research Goals: 1. Chronicle the major shifts in society affecting the public relations industry. 2. Glean a clear, precise definition of public engagement. 3. Understand the tool of media relations and how it’s changing. 4. Demonstrate an understanding of the current direction of the public relations industry as a whole. Secondary research was used to analyze the history of the profession and gain insights from published speeches, presentations and written works on the future of the industry. In terms of primary research, the best and most credible sources to obtain information from are industry leaders and current practitioners. This means the heads of agencies, the executives of corporate communications and the day-to-day account teams. Expecting high participation in traditional research methods such as surveys or focus groups from these members of the field is unrealistic, particularly as the notion of public engagement is so new and the future of the industry is unknown. Therefore, the chosen method of research was one-on-one interviews with the following individuals. These individuals were chosen based on their background, involvement within the industry or by suggestion from other professionals. (A complete summary and list of key takeaways from each interview can be found in the appendix of this document.) 4 1) Taylor Amaro, Sr. Global Client Knowledge Manager, Edelman Public Relations 2) Mark Blevis, Associate Vice President, Fleishman-Hillard Public Relations 3) Thomas Goff, Owner, Goff Consultancy (Former Deputy GM at Edelman) 4) Monte Lutz, Senior Vice President, Digital West, Edelman 5) Israel Mirsky, Executive Vice President, Emerging Media & Technology, Porter Novelli 6) Brad Shaw, Vice President Corporate Communications, The Home Depot 7) Don Spetner, Executive Vice Present, Corporate Affairs, Korn/Ferry International Glossary of Common Terms To fully understand this arena, the newest buzzwords and industry lingo must be defined. Below are common terms used by industry practitioners.  Channel-agnostic –The notion that media channels do not drive the messaging or outreach. With the democratization of media today, the channel by which the message is delivered is chosen based on several factors including audience needs.  Citizen journalism – “People without professional journalism training can use the tools of modern technology and the global distribution of the Internet to create, augment or fact-check media on their own or in collaboration with others. 2 ”  Interdependence – Is a “dynamic of being mutually and physically responsible to, and sharing a common set of principles with, others. 3 ” 5  Metrics – Metrics are “a set of measurements that quantify results. Performance metrics quantify the unit’s performance. Project metrics tell you whether the project is meeting its goals. Business metrics define the business' progress in measurable terms. 4 ”  Open advocacy – The idea of being transparent and open about your purpose and intentions, especially in public relations. 5  Owned Media – Controlled media are resources such as newsletters, reports and websites where message development and distribution is controlled by the organization.  Return on Investment (ROI) – The return, often profit or results, a company or organization experiences after putting forth an investment of time, money or resources.  Social media – “Online communications in which individuals shift fluidly and flexibly between the role of audience and author. To do this, they use social software that enables anyone without knowledge of coding to post, comment on, share or mash up content, and to form communities around shared interests. 6 ”  Two-way communication – Also known as the two-way symmetrical model, “uses communication to negotiate with publics, resolve conflict, and promote mutual understanding and respect between the organization and its publics. 7 ” 6  Uncontrolled Media – Uncontrolled media, often referred to as earned media, is the coverage generated by 3 rd party sources where control over content placement and distribution is very limited for companies. Background of Public Relations While the term public relations has been in use for roughly 100 years, the practice of communicating with the purpose of influencing has existed since the earliest civilizations. 8 At the end of the 1800’s during the age of the robber barons, corporations began to understand the importance of combating hostility and promoting public favor through public relations. 9 While the practice of managing publics continued, it wasn’t until Edward Bernays, often dubbed the “father” of PR, coined the official term in his book Crystallizing Public Opinion, originally published in 1923. 10 This came after his work on the Committee on Public Information during the First World War which was tasked with selling war bonds and generally to promoting the war effort. In fact, at this point in history, the significance of public opinion was at its peak with historical organizations charged with ginning up public support of the war that “demonstrated a never before seen power of publicity to mobilize opinion. 11 ” Political campaigns and agendas continued to shape the path for public relations as an industry with the Roosevelt Era demanding ways of communicating the New Deal programs and the business boom that followed the Great Depression of the early 1930s requiring leaders to translate their successes to gain public trust. 12 Bernays’ also entered 7 the 30s with his exemplary 1929 Torches of Freedom campaign where women marched down Fifth Avenue smoking cigarettes. Bernays’ was a consultant for the American Tobacco Company at the time, and used the mask of promoting feminism and women’s rights to cause a surge in smoking. 13 This was a quintessential example of the emergence of product public relations. A few short years after Bernays’ Propaganda was published, World War II saw the Office of War Information organize one of the largest public relations campaigns in history to garner support for America’s entry into the war. 14 Bernays’ described the use of propaganda, saying “those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power of our country. ...It is they who pull the wires that control the public mind. 15 ” The postwar growth saw the emergence of industry leaders like Harold Burson, Daniel Edelman and William Novelli, who founded public relations agencies that still dominate the field today. The 1940s saw the inception of the television in the United States, bringing a new form of communication among leaders of the time. Advertising also sky- rocketed, becoming the channel of choice for selling products. 16 The 1960s emerged as an era of activism pushing for social change. Public demonstrations quickly turned into attacks on individual corporations, their profits and, ultimately, their reputations, causing an immediate need for came to be known as “damage-control.” 17 The classic Tylenol case demonstrated the importance of a swift and transparent response as the 8 answer to maintain loyal customers after a crisis. The 1980s saw large-scale campaigns where advertising, marketing, direct sales and public relations united, though sometimes tenuously, to promote a product, service or idea, as seen in 1987 when American Express launched its Optima Card. As corporate campaigns morphed the industry into a full-fledged communications machine, public relations gained traction and has spiraled into a doctrine that is incorporated into almost every industry today. For several decades, the communications realm has consisted of two major tenets: paid media and earned media. Advertising, or paid media, is built on the foundation of controlled messaging and the “push” tactic of reaching an audience. In recent times, advertising has become a race for creativity and generating the “wow” factor since much of its credibility is lost when consumers know the ads were bought. Public relations, on the other hand, has long been known as a media relations-centric field, while still having limited control over messaging but achieving credibility via third-party endorsements. 18 Finding a balance between the two has been big business’s major goal when it comes to promoting a product or service. Media relations, the very heart of public relations, has changed drastically as well. The traditional news release, created by former journalist Ivy Lee in the early 1900s, has served as the standard tool for company messages to the media for over a century. 19 But as the media landscape continues to develop and expand, the press release has inadvertently become just a small speck on the scale of media relations tactics available. 9 Elaborate press kits, press conferences, satellite media tours, b-roll and video releases continue to dominate the portfolio of PR tools, but what’s important to understand is that these tactics are drastically changing with the emerging technologies. Live video streaming, press materials delivered on thumb drives, global satellite media tours, blogging and LIVE demos are now commonplace and sometimes even expected. These kinds of tools provide an immediate flow of information that can both create opportunities or instigate problems due to lack of control. And with the rapid advances in technology, public relations professionals are in a whirlwind of change as both the tactics and overall field of PR morph into an all-encompassing, conversation generator. Evolution of the Industry Quite possibly the largest turning point for most industries across the world was the introduction of the Internet and its integration into everyday life. According to CNN, “the spark that touched off the Internet boom 20 ” was when Netscape announced its initial public offering in 1995. The dot-com era shortly followed and is marked by an explosion of Internet-based businesses as well as existing companies putting information online for more dynamic access. The growth was continuous and significant with Web 2.0 emerging in the late 1990’s. In 1999, Darcy DiNucci, a consultant on electronic information design, published an article called "Fragmented Future” where she coined the term “Web 2.0” explaining that “the Web will be understood not as screenfulls[sic]of text and graphics but as a transport mechanism, the ether through which interactivity happens. 21 ” She even went as far as predicting that “it will *...+ 10 appear on your computer screen, [...] on your TV set [...] your car dashboard [...] your cell phone [...] hand-held game machines [...] maybe even your microwave oven.” The internet began as a simple, one-dimensional platform where companies posted existing materials for consumers to browse. DiNucci describes the shift to Web 2.0 where companies were turning their websites into separate entities that would act as an information hub, thus expanding the channels for communications. Out of Web 2.0 emerged social media, which relies on user-generated content and ubiquity of web publishing. Blogs created citizen journalists and with MySpace launching in 2003 and Facebook in 2004, the communications landscape underwent an extreme transformation. At the same time, the traditional news publishing and broadcasting industry were thrown into turmoil by the abundance of free online content. Unable to adjust their business models on the fly, mainstream media has begun to decline and is facing an uncertain future. 22 Speed of news, demand for information and immediacy of responses in the mid-00’s now dominated the public relations industry and revolutionized the way companies could reach consumers. This emerging sense of direct-to-consumer interaction acted as a catalyst for what would quickly become a new era for the field. Today, while traditional media like broadcast networks, consumer monthlies and national dailies are still large influencers, the ability to for information seekers to go straight to the source with new media has thrown the communication industry into a frenzy of trying to understand and master this new arena. 11 The leaders of major public relations agencies recognize this shift and are making momentous changes to their approaches. Richard Edelman, President and CEO of Edelman, notes that “today, there is a dispersion of authority, away from the mainstream media and classic sources of influence toward open platforms and new voices driven by passion and personal experience. 23 ” [Disclosure: At the time of writing this document, the author is employed by Edelman Worldwide.] Societal shifts in communication, increasingly internet-based, create a completely new environment for practitioners. It’s a world based on shared interests, interdependency and peer-to-peer communications. What began as a statement and slowly morphed into two-way communication has now exploded into multiple conversations, use of non-traditional media and has demanded participation from both consumers and companies alike. The term for it has yet to be determined. Some call it an age of new media; academicians deem it digital media, while others simply refer to it as social media, but industry experts who have truly defined the current state of public relations call it public engagement. Why Public Engagement Before being able to properly define the theory or understand its implication on the industry, it’s important to explore the current environment to comprehend why a major shift is continuing to take place. It’s no surprise that the Internet and other technological 12 advancements have drastically changed the way we operate and communicate. But what’s important to understand is that a major societal change is occurring as well with a rise in peer-to-peer communications and a tremendous shift in authority. 24 The media landscape is changing on a fundamental level and continues to be in constant flux as new technologies bring social and traditional media to higher levels. The traditional approach of PR professionals sending a single message to a small number of outlets has been replaced by much smaller, more-personalized messages that are distributed through a wide variety of channels. 25 While an explosion of media channels gives communicators more choice when reaching audiences, it also brings a limited attention span among readers that requires information to be quickly digestible and even shareable. Israel Mirsky, EVP of Emerging Media and Technology for Porter Novelli, asserts that “audience attention is completely fragmented by a million cable channels, websites and mobile devices, and not the least of which are private, online networks that we, as communicators, may never have access to. 26 ” This makes navigating the media atmosphere much more difficult than ever before. Paralleling this changing media environment is a movement away from traditional sources of authority. Major media sources are no longer the only sources and “regular people” are becoming just as influential in certain instances. The idea of citizen journalists or self-publishing gives everyone a voice in a way never before experienced. Word-of-mouth is amplified via far-reaching media channels and increased weight is 13 placed on personal networks. People are getting their news from chosen sources including friends, networks and those they follow directly. This reflects an important shift in the trust among consumers that PR professionals must now take into account when communicating on behalf of a brand or service. 27 Editor-in-Chief of WIRED Chris Anderson introduced the idea of the long-tail theory in October 2004 explaining that “our culture and economy is increasingly shifting away from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. 28 ” Geoff Livingston, dubbed a “local blogging guru” by the Washington Post, adapted the theory to the current media landscape. In the chart below, he illustrates the effectiveness or the weight of various earned media tactics in the current environment. Hits within the red section would have the most impact, while the yellow (long tail) still makes up half of the marketplace. 29 Clearly, traditional media outlets are still critical for influencing, but the figure below demonstrates how those outlets are not as abundant or dominating as they once were and that the small, more accessible vehicles must now be considered 30 . 14 Another important consideration that has occurred simultaneously is a shift among consumers, particularly as Millennials, people born between 1980-1995, begin to dominate brand development and purchasing power. 31 Consumers want a say in everything, including branding, services offered and development of a product. They want to be part of decision-making and will voice their opinions more than ever when they disagree. 32 And, a changing media landscape means more channels for this conversation and less control from companies or brands. This was evident when Gap re- branded by changing its logo then suffered heavy backlash via social media channels. 33 It was almost as if consumers were upset that Gap didn’t consult with them first. Companies are realizing that it’s nearly impossible to satisfy this instant-gratification expectation when so many different consumer groups have different opinions. The Olympian notes that “as preferences became highly fragmented, companies decided Figure 1- Long Tail Theory of Media 15 that the only answer was to outsource the customization to consumers themselves. 34 ” Again, consumers now feel entitled to a “vote” in product development making it difficult for marketing and public relations to ignore this demand. The bottom line is that we’re operating in a much more complex environment than ever before and it lends itself to a frightening fragility of reputation. Corporations of all sizes and geographic reach must work to protect their images on a regular basis as damaging information spreads at a wildfire pace. To do so, corporate communicators must begin their approach to media and outreach at a much higher level, considering all channels and all stakeholders. This adds a new aspect to the profession of public relations and is the very essence of public engagement as a framework. Defining Public Engagement The phrase public engagement has yet to be defined in a way that’s accepted among all users. Some might believe that the words simply illustrate a new way of reaching audiences, engaging them. Others give it a clear definition and go as far as calling it the next step for public relations. Since the concept is still so new, it’s best to examine a multitude of definitions. 16 Jerry Swerling, Annenberg School for Communication & Journalism, University of Southern California “Strategic public engagement is the discipline-agnostic practice through which organizations form matrices of interrelated, active and bi- directional relationships with their stakeholders, or groups of stakeholders, in pursuit of organizational goals. At a macro, strategic level it consists of an organization-wide commitment to a multi-dimensional, multifunctional, fully harmonious strategy of engagement. At a micro, tactical level, it consists of specific-operational processes and practices- as determined by each unique set of stakeholder needs- utilized to create and maintain those engagements. 35 ” Richard Edelman, President & CEO, Edelman Edelman defines public engagement simply as “meaningful engagement in a connected world.” Richard Edelman asserts that “PR can become the discipline that melds strategy and communications, constituting an essential bridge between corporations and their stakeholders. … PR must also be part of business strategy and policy formulation, in addition to being responsible for communicating the decisions. 36 ” According to Edelman, public engagement has four important attributes: it must be democratic and decentralized, inform the conversation, engage with influencers of all stripes and it must include policy and communication. 37 17 Office of Public Engagement, the White House “The Office of Public Engagement is the embodiment of the President’s goal of making government inclusive, transparent, accountable and responsible. We create and coordinate opportunities for direct dialogue between the Obama Administration and the American public, while bringing new voices to the table and ensuring that everyone can participate and inform the work of the President. 38 ” Each of these definitions, one from an academic institution, another from a for-profit agency and finally one from within the government, possess a similar foundation. Each definition embraces the new complex environment and emphasizes the need for interdependency among publics, transparency from corporations and a more interactive approach to reaching audiences. The fact that all three definitions are fairly consistent is evidence that public engagement is a theory widely identified and examined. Aside from theory, though, few experts have been able to pinpoint exactly what this shift in the industry means, particularly from a tactical standpoint. Circling back to Edelman’s initiative, formally known as “Edelman Engage,” the firm has identified seven clear behaviors that can be applied to campaigns. 39 What’s interesting to note is that after speaking with leaders from an array of agencies and backgrounds, the seven 18 behaviors coincide with each person’s idea of the current shifts within public relations. Digging deeper into each one will help further define public engagement. 1) Embrace & navigate the complexity The media landscape has drastically changed and, therefore, the world in which communicators work has become far more complex. 40 Embracing a web of influence, rather than a linear approach to messaging, can result in more strategic thinking when it comes developing a campaign. The theory of public engagement holds that recognizing the endless communication possibilities and being able to nimbly steer through the environment is key to the modern world of public relations. Taylor Amaro, Sr. Client Knowledge Manager at Edelman, points out that public relations is working in a business framework and, therefore, must be held to the same standards as practices like marketing and advertising. She notes, “the importance of integrating goals and objectives from all forms of communications is critical to reach a common goal. 41 ” While this notion isn’t necessarily new, public engagement has created an more significant need for credibility and accountability because information is shared so easily across a multitude of channels. 2) Listen with intelligence There’s no doubt that traditional media, while still valuable and influential, is declining. 42 In 2009, CNN reported that “at least 120 newspapers in the U.S. 19 have shut down since January 2008. 43 ” With the introduction of online media outlets, citizen journalists and influencers outside of highly respected and trusted media outlets such as The Wall Street Journal and The New York Times, communicators must use new forms of research to reach “media” that’s relevant. This means listening with a new kind of intelligence and considering stakeholders not formerly recognized as influential such as niche experts or category bloggers like mommies or foodies. 3) Participate in the conversation Companies are often hesitant to participate in conversations for fear of lengthening the news cycle or generating further controversy. While this strategy is sometimes smart, for the most part, these conversations are happening regardless. In an age of instant communication, public engagement calls for identifying hotspots for conversation, joining with relevant and informative content and speaking a language that target audiences understand. 44 Mark Blevis of Fleishman-Hillard agrees, saying “the tools of public relations are far more democratized now and the distance between the producer and the consumer has narrowed significantly. The interactions are more like an interpersonal relationship. 45 ” 20 4) Create and co-create content Content creation is the idea of developing and producing media that’s interesting or informative and that can be shared across multiple channels. 46 This has particularly gained importance with the increased conversations online. The idea that companies can be the aggregators of discussions makes it possible to add to the overall experience of readers and increases their value within the conversation. Blevis adds that content “must either be informative or entertaining. Creating an online vibe requires driving meaningful content, maintaining relationships and responses as well as passion that is evident to the readers. If there is no hook to keep it buzzing, digital content dies immediately. 47 ” 5) Socialize media relations Media relations is no longer about the press release, as well-known New York Times columnist David Pogue argues, “in a business where 50 pitches a day land in journalists’ inboxes, the first job is getting your message across.” The key to media relations now, as discussed later in this paper, is understanding how reverberation can disseminate a message further than circulation of an outlet alone. By capitalizing on traditional media’s existing network and spreading the message across multiple channels, the message is more widely distributed and reached consumers where they want to be reached. The 2011 Edelman Trust Barometer reveals that “stakeholders need to hear or see 21 something 3-5 times to believe it; the more socialized content is, the more likely it is to impact perceptions. 48 ” Recognizing that news is often shared via several media channels like e-mail and mobile apps allows communicators to capitalize on multiple platforms to socialize information. 6) Champion open advocacy Transparency has long been a part of public relations, particularly when it comes to crisis management. Openness and honesty lead to increased credibility and therefore stronger relationships with stakeholders. Today, as the media landscape is increasingly more complex, it’s important for practitioners to be proactive about this transparency rather than reactive when crisis arises. Sharing the brand’s ultimate agenda and motivations behind the campaign will resonate with audiences and express honesty that leads to brand loyalty in many instances. As information is shared at instantaneous rates, it’s important that the information is accurate and positive. This can be influenced by a PR professional’s willingness to share the firm’s goals and provide context when telling the whole story. 7) Build active partnerships While strategic partnerships have existed as part of public relations campaigns for years, what’s important to understand is a shift in thinking among consumers. Businesses must now embrace the idea that purpose, in addition 22 to profit, must drive their campaigns to successfully satisfy the public demand. By partnering with NGOs, celebrities, or other groups, companies are perceived as more credible and are equipped with expertise and content which ultimately extends their reach. For example, in 2009 Pepsi launched the Pepsi Refresh Project that awarded $20 million in grants to individuals, businesses and non-profits that promote a new idea that has a positive impact on their community, state, or the nation. One year later, the 2010 Edelman goodpurpose® Global Study revealed that when American consumers were asked (unaided) to name what “brand or brands come to mind as placing as much or more importance on supporting a good cause as they place on profits,” the top company chosen was Pepsi. 49 It’s clear the strategy behind these partnerships is just as important and deciding to enter one in the first place. Companies who link with organizations that are irrelevant to the business goal can get in trouble with stakeholders as well. According to an article in Fast Company, “doing extra social work not related to the firm's operations without direct benefits for the company could be considered stealing from the shareholders. 50 ” In the case of Pepsi, there was a clear goal and a relevant link for Pepsi’s project, leaving a positive and lasting impression among consumers. 23 Public Engagement vs. Integrated Marketing Public engagement is clearly about a large-scale outreach to consumers via several media channels aiming to change perceptions, behaviors or affect the bottom line. This raises the question of the difference between public engagement and integrated marketing. It’s almost as if communication channels have been mashed up to dissolve the line that once clearly defined the difference between each function within businesses. Now that they all work together, isn’t this the same notion of integrated marketing? It’s critical to understand that integrated marketing is traditionally a very cause-and- effect focused idea. It coordinates all communication tools, functions and sources within a company into a seamless program that maximizes the impact on consumers and minimizes cost. 51 This sales-driven framework is extremely linear and narrow minded in a world that is much more complex and harder to navigate. Israel Mirsky of Porter Novelli believes that coming closer together and devising integrated campaigns is vitally important. He says that “integrated campaigns are rapidly becoming the only way to conduct successful marketing and communications. While this might not be true in every instance, many larger companies have a range of targets, especially younger and internet savvy consumers, who demand a more integrated approach. 52 ” What’s important to understand, however, is that this new complex media environment requires much more than simply integrating communication functions. Mirsky says that “the industry just doesn’t want to believe that marketing is far more expensive these 24 days. The fragmented media landscape has caused expenses to skyrocket with the needs to spend across so many more channels. 53 ” This is something integrated marketing as it was once defined does not take into account. Public engagement is a broader concept that works on a continuum, rather than having a beginning and end like in marketing. It integrates multiple media forms by actively participating in conversations and outwardly creating and distributing content. Public engagement is an ongoing process by which companies build and maintain relationships by contributing to conversations. While the lines between public relations, advertising and marketing are blurred with this concept, defining those roles will come with time and will be explored later in this paper. When defining the current state of the industry, it’s about embracing this change and understanding that these forms of communication no longer act in isolation. Brad Shaw, Vice President of Corporate Communications at The Home Depot, notes that “some of the better companies have always had public relations at the management table, rather than as an afterthought to marketing and advertising. Social media has just emphasized the need for this, making PR an essential part of the marketing mix. 54 ” Case Studies The following case studies serve as examples when one or more aspects of public engagement is used to creating ongoing relationships with consumers.  The Home Depot, “How-To” Community 25  General Motors, “Drive-Thru Finals”  Starbucks, Inaugural Cup Summit The Home Depot In a personal interview, Brad Shaw, Vice Present of Corporate Communications for The Home Depot, discussed an important strategy change for the company and its development of the “How-To Community” that launched in October 2010. 55 The Home Depot’s existing communication efforts included its Facebook and Twitter pages that largely focused on customer service and promotional plans. While the communications staff had the expertise to respond to angry consumers and promote upcoming sales, Shaw recognized that The Home Depot’s greatest assets were actually the in-store associates. These individuals had the resources and knowledge to assist customers with day-to-day projects and needs, making them one of the most valuable parts of the company overall. This kind of observation helped Shaw and his team understand the company on a deeper level and identify inherent strengths to capitalize on for consumer interaction. The Home Depot’s overall goal was to engage customers outside of their normal interaction with the brand. Shaw’s strategy was simple: Engage consumers by bringing the company’s most valuable resource, its associates, online. He recognized that product knowledge lives within the store associates and that other methods, like call centers and vendor communities, simply don’t work. He worked with his team to 26 develop an idea that would bring store associates to consumers in real-time and in an effective way that contributed to the overall business goal. The key to making it work was pulling 25 tenured associates off the sales floor for a few hours a week to answer questions and respond to consumers. What was important to understand was that this was not measured based on ROI. In fact, some executives were wary that answering questions online would deter folks from ever setting foot in a store. Shaw argued otherwise, stating that store associates often recommended products via the online shopping site or physical locations. In fact, Shaw said “we’re not looking at this as a revenue generator but rather an extension of the brand.” He wanted to find another way to deliver what they do in their stores, adapting to where Home Depot audiences were already talking and shopping. In October 2010, The Home Depot launched its “How-To Community” where consumers could sign on to browse forums of project-related questions or post their own. Content for the site includes typical forum discussions, Q&A as well as video demonstrations from staff and links to products. The “How-to Community” page includes forums, project guides, buying guides and a blog all equipped with visible “share” buttons for consumers to link to their Facebook and Twitter accounts. After distributing its official press release in October 2010 and following an earnings announcement in December 2010, business media across the nation began to pick up the story, calling the “How-To Community” a way for the brand to leverage this DIY 27 market. Press coverage included Forbes.com and Nasdaq.com. 56 But more importantly, the community has continued to grow exponentially as a way for consumers to interact with the brand with immediate and helpful responses. In this instance, The Home Depot capitalized on an opportunity to create owned media and place it in a central location for consumers to converse and share ideas in a way that was meaningful and relevant to them. This is the key to public engagement. By creating this content and understanding what the needs of their consumers were, The Home Depot was able to connect with users on a deeper level than sales ever could. General Motors Continuing the trend of a direct-to-consumer approach, Melissa Robinson, Senior Vice President of Digital Communications at Weber Shandwick, discussed a campaign for General Motors that focused on “butts in seats” rather than media impressions. In light of recent financial crises, General Motors suffered negative perceptions in the marketplace that left consumers dissatisfied and the company’s communicators unsure of the future. The overall challenge presented to Weber Shandwick was to re-engage consumers with GM automobiles and reinforce the brand and new vehicles. Weber used grassroots, authentic engagement that would significantly change the soul behind the brand and allow people to experience the vehicles first-hand. GM launched a campaign called “Drive-Thru Finals” that got straight to the core of a target demographic -- college students -- and delivered services that met their needs at the 28 time. The idea was simple: GM lined up Chevy cars at four major university campuses between the hours of 9 p.m. and 1 a.m. during finals. Students could test-drive or be driven through nearby fast food joints for free food to help them survive the week. GM equipped them with flip cams to chronicle their rides. The content created on these cameras was then amplified via several media channels. Some videos, including student raps that spoke to the quality of the cars and their experiences, turned into YouTube sensations. GM established measurable outcomes to evaluate the success of its campaign. The primary objective was to get “butts in seats” and this campaign succeeded in showcasing vehicles to more than 7,000 drivers. In a 3-question survey that was administered before and after the test-drive, 92 percent of participants had increased purchase consideration. Over 30 speaking opportunities stemmed from the event, 150+ media impressions, close to 150 blog posts and tweets were made and nearly 110 unique videos were created for distribution. GM’s focus was not on media generation but rather a direct-to-consumer approach that would lend itself to ongoing conversations post-event. This was an excellent example of how a company can spark conversation by contributing to existing conversations and events. By going where these consumers already were, GM made efficient use of dollars. In addition, GM recognized a need in these consumers and fulfilled it in a way 29 that also gave them great exposure for the brand. It also left room for expansion in the coming years, essential for successful and ongoing engagement. Starbucks Taylor Amaro, Sr. Global Client Knowledge Manager at Edelman, revealed a recent Starbucks campaign that engaged a multitude of audiences, not just the customer. 57 Extensive research pointed to the fact that customers were demanding a greener approach from food and beverage companies. And Starbucks, being a worldwide coffee conglomerate, has continuously held itself to high standards of recycling and environmentally-friendly initiatives. In 2009, however, Starbucks was sustaining widespread criticism for the massive amounts of cups that were being produced and not recycled. After in-depth research, the company determined that while the material its cups was made from was recyclable, the recycling facilities, and their capabilities, varied drastically by region. While one facility could recycle a variety of materials, others, especially in large regions like Los Angeles, could not. This was out of the control of Starbucks directly, but a starting point for outreach. Starbucks set forth with a clear goal to search for solutions around this problem and then effectively communicate this to their consumers. The company took a non-direct approach with consumers by developing strategic partnerships that would actually solve the problem on a deeper level, one that would satisfy the issue at hand without just talking about it. In 2009, Starbucks launched the inaugural Cup Summit in Seattle and 30 assembled local government representatives, cup manufacturers, recyclers and other stakeholders to jointly identify steps required to make their cups recyclable in form and in practice. The Cup Summit received coverage in the mainstream media and the Starbucks.com/Responsibility site was re-vamped with this new commitment to advancing reusable cups. While digital amplification wasn’t a major strategy for Starbucks’ approach on recycling, the idea of developing strategic partnerships to align profit with purpose had a positive effect on the brand image. And Starbucks was able to practice transparency that made their outreach more credible. Again, customers wanted a say in the brand and demanded a smaller carbon footprint from the company. Starbucks took note and acted upon these conversations to deliver a satisfying and ongoing event that could be leveraged in the future. All three of these examples present a clear indication that public relations is morphing into a new kind of practice. The Home Depot and GM illustrated the benefits of direct- to-consumer interaction and content creation, while Starbucks took advantage of strategic partnerships to build a stronger community and ultimately brand image. These kind of campaigns continue to occur and shift the way all public relations professionals think about strategy, planning and execution. 31 Evolving Media Landscape: Owned Media complements Paid and Earned It’s evident that the current state of public relations is in flux and that public engagement is simply a term to describe this new era of communication and expectations from consumers. After examining the above case studies that demonstrate this emerging way of practicing, it’s also clear that media relations is no longer the central focus of the industry as it once was. As the media landscape is evolving rapidly, PR practitioners ask themselves: what’s happening to media relations? Before we can understand what’s happening to the function of media relations, it’s important to recognize different types of media that now exist in this new framework of public engagement. Paid and earned media are no longer the driving forces behind communication. Today, a third type of media is emerging; one that many call owned media. Sean Corcoran, an analyst at Forrester Research Inc., recently published a post that illustrates the differences between earned, paid and owned media. Corcoran defined owned media as a “channel that a brand controls” such as the “website, mobile site, blog or twitter account” that “builds longer-term relationships” with consumers. 58 The Home Depot’s online “How-To Community” would be an example of owned media as it is controlled by the company but also offers an area of engagement for consumers. Forrester Research created the following chart to summarize the differences between 32 these types of media and the various roles, benefits and challenges they bring about for communicators. 59 Table 1 – Elements of Owned, Paid & Earned Media In addition, some experts add a fourth tenet to the media mix, naming social media as a separate category since it requires a different kind of strategy and finesse when engaging stakeholders. This four-pronged approach to media that now affects consumers directly plays a large role when it comes to interaction and messaging. Media relations is no longer a tool to simply engage with mainstream and high-profile influencers. Many believe that traditional media in essence is not declining, but rather being re-defined by an increased use of social media. Outlets such as the Wall Street Journal and New York Times have expanded their online presence to include blogs, 33 Twitter accounts and mobile applications. The influences are similar but the channels through which they reach readers have expanded. Mark Blevis, Associate Vice President at Fleishman-Hillard, believes that while online media is quickly growing, it does not displace traditional media. He asserts that “many firms relish in the idea of “going viral” but it’s not that simple. Taking a more integrated approach with age-old media relations tactics as well as digital extras is how most companies are approaching campaigns today. Digital is not mature enough to function on its own and at the same time, without digital, traditional media would eventually get shelved. 60 ” In addition, an article in Forrester’s Digital Content Review noted that “as traditional media companies struggle with their business models, their content is now just a component of a more fragmented and interactive landscape — one in which social media and content are, for many users, increasingly intertwined. 61 ” This is evident in how once-authoritative outlets are struggling to stay relevant and convenient for their readers while delivering engaging content beyond just the written word. While it’s critical to understand the emerging types of media, communicators are now tasked with how to utilize them within strategy. Randall Rothenberg, president and CEO of the Interactive Advertising Bureau, agrees that “there is now strategic equivalence for the first time between paid, earned and owned media. 62 ” This emergence of owned media adds an additional arm onto the typical outreach campaign and is the very core of public engagement. Companies must now create content, generate and participate in 34 conversations and understand this new media landscape to survive. In a recent PR Week article, author Larisa Drake noted that “traditional media is still vital to the communications mix and new digital channels should be part of an integrated strategy. In other words, digital should be part of a surround-sound effort that includes traditional mass media, direct response communications, live interactions, PR, and so on. 63 ” Media Relations is Dead. Long Live Media Relations. With the understanding that the media landscape continues to evolve, a question about current and future gravitas of media relations exists. Is the main function of public relations disappearing? Don Spetner, Executive Vice President of Corporate Affairs at Korn/Ferry International, explained that “until pretty recently, the media was truly the gatekeeper to what was considered news or not,” noting that the PR professional was tasked with creating newsworthy content. 64 With the explosion of online news outlets, he explains that “the gate is still there, but nobody has to not pay attention to it anymore.” While Spetner believes that media placements still add a level of credibility to a campaign, the influence of mainstream media has decreased and actually weakened the credibility of all news. Spetner speculates that the PR profession could simply be experiencing a decline in the practice of media relations. He explains that declines begin very slowly, almost unnoticeably, and then can be extremely swift and catastrophic. He recalls that “the decline of newspapers was very gradual for the first seven years and then it just fell off a cliff. We might be in one of those periods now with 35 the media relations function. It’s still bread-and-butter, people are still paying for it and it’s still the dominant tool, but a major shift is taking place.” While Spetner had his own thoughts, he also posted the following questions to various LinkedIn groups for professionals to provide input:  Is media relations becoming irrelevant? Less relevant? With the explosion of social media and the decline of print and broadcast news, is media relations being relegated to just one of many tools? The responses came in rapidly and provided an array of opinion and insight: Group: The Holmes Report 65  Katie King, Managing Director at Zoodikers Consulting Ltd Media relations is as important as ever. But “media” has grown to include a whole world of influential bloggers, tweeters, fans and followers. Remember that social media is just a conduit… another channel to influence prospects. And content is still the key. But rising above all of this is the need to keep focused on the business strategy; that dictates which PR tool to use.  Betsy Merryman, Healthcare Marketing and Communications Consultant Totally agree with Katie. The definition of "media" has broadened. And I'll add... hasn't media relations always been just one of many tools? 36  Eric Hollreiser, Head of Marketing & Business Development at Resolve Market Research Media relations is MORE important than ever. As an example, studies consistently show that the biggest trending memes in social media channels originate from media sources. So if you want to be effective in social media, it is essential that you have an effective media relations program.  Jeremy Woolf, Sr. Vice President, Global Social Media Practice Lead at Text 100 If we're talking about traditional media, then it’s still very important. For example, HP recently released a study illustrating how mainstream media is influencing online discussions. 66 Saw this first hand recently with an energy sector client in Australia where we determined the following pattern: o Blogs, Twitter, discussion forum, low level discussion o Mainstream picks up the story, accelerates other channels o Mainstream news cycle declines, social continues conversation As to the future, I think it is critical that we look at influence as an interconnected whole - not just in buckets. 37  Paul Holmes, CEO, The Holmes Group I don't have much to add that doesn't simply echo earlier posts. Good PR people have always used multiple media, some paid, some earned, some owned. Newspapers are a medium, events are a medium, Facebook is a medium -- all should be part of the mix. If the question is whether mainstream media has declined in influence, I'd say no, but I would add that its influence has always been over-rated, good for reaching people with a message, not so good at engaging them in a way that prompts brand activism. And I do think there's more focus on engagement today than on reach and frequency, which could be interpreted as a decline in the influence of mainstream media relations. Group: PR News Group 67  Jason Karpf, Public Relations/Marketing Consultant, Writer Media relations must "take its place" in the public relations spectrum, but it is not obsolete by a long shot. Studies have shown an overwhelming number of Twitter and Facebook posts involve sharing and commenting on news items. It is hard to replace a prominent traditional media placement that can turn into social media content--again and again and again. 38  Michelle Messenger Garrett, Public Relations Consultant/Strategist No! In fact, I've seen much more lately about the value of the traditional media, which I've always believed in and which my clients still hire me to handle. I'd say social media is a component of a PR strategy--not the end all, be all.  Ellen Lebowitz, Press & Publicity Traditional media is an essential part of a publicity campaign and will remain valuable. Social media is merely a component of a PR strategy. I agree completely with Michelle. Call me naive, but I can't imagine a client's preference to social media over, for instance, being featured in the Times or "60 Minutes." Group: Corporate Communications Executive Network 68  Benjamin Singer, PR/Public Affairs Executive We are in the era of narrow-casting. Social media has answered the technological need, "What's in it for Me?" It is the rifle shot, like it or not, to reach consumers, supporters, advocates, activists -- whomever -- with precision and split-second timing. Traditional media relations is now relegated to the role of 'amplifier' in the mix -- not the sole deliverer of credible and broad public messaging. Example: the Mid-East demonstrations and activism of late have been successfully driven by internet cafes and chatter. But they were legitimized 39 and amplified by American and worldwide mainstream media attention. That's the shift that has many of us debating and calculating more than years past -- what to do next in terms of strategy and effective outreach.  Pamela Whitney, CEO at Whitney Corporate Relations It depends on your target market. The mainstream media print and broadcast outlets still primarily drive the major news stories and are utilized by an older market. A younger target market -- and freedom seekers in oppressed countries - - obviously are more comfortable with social media, apps, internet front pages and blogs. Overall, yes traditional news outlets are just one of the many exciting communication tools today. The consensus is clear. Professionals believe that media relations is as relevant as ever given the increased array of media outlets. While traditional media such as television news, daily newspapers, consumer and trade magazines are no longer the sole focus, they are still a driving force of influence. Elena Verlee’s article in Ragan Communications titled “5 reasons PR pros still need traditional media” outlines the following 69 : 1. Traditional media are instantly recognizable. 2. Traditional media give you instant status. 3. Traditional media still reach vast audiences. 40 4. Social media feed on traditional media. 5. Traditional media have huge social media presence. The first three points have been the essence of media relations since the beginning of modern public relations. Hits in top-tier media have the highest credibility because the sources are recognizable and reach a large number of people. What’s important to explore, however, is the idea that adding social media to the mix doesn’t replace traditional media but rather amplifies it. To Spetner’s original point, media relations is about credibility and companies are still seeking these placements. To actively engage an audience, though, these companies must then leverage these stories via multiple channels including social media outlets. Media relations, media list building and pitching are still the foundation of solid media outreach. But what’s exciting for newcomers is the ability to land influential pieces on “Good Morning America” or The New York Times and then show them off more broadly across a variety of communication channels. Where is PR headed? And what about Marketing? As the traditional functions of public relations continue to expand, the future of the industry is undoubtedly in flux. With public engagement and this direct-to-consumer approach, many experts would argue that the lines between PR and marketing are beginning to disappear. Spetner explains that Korn/Ferry is experiencing this change in the kind of talent being recruited, saying “we are seeing a blurring and more power going to a communications function. 70 ” Remembering the definition of PR as a function 41 that “maintains mutually beneficial relationships between an organization and its publics,” one might ask, so what’s changed? Paul Holmes, CEO of the Holmes Group, asserts that based on definitions, “if public relations is doing its job properly and marketing is doing its job properly, marketing would be a part of public relations. 71 ” He continues, explaining that “the public relations function rarely operates in the way that I just described. *…+ Far too many public relations people have allowed themselves to be defined not as the person who manages all of those relationships but as the person who deals with the media.” This is why PR has long been considered an afterthought to the marketing function and perhaps why a majority of the budget has been devoted to marketing and advertising. Spetner adds that “the key to marketing before was generally advertising and direct mail. There’s no question now that advertising is diminishing in its power.” Now, as relationship-building is ever more significant, particularly direct with consumers, the industry is experiencing an uncomfortable unknown. Holmes observes that what “is happening right now is organizations are coming to realize that marketing, as an isolated discipline with about 100% focus on consumers, is much more difficult in a social media environment, because there are an awful lot of people who can have a tremendous impact on the decision of consumers. 72 ” A recent PR Week article supports this noting that “new technologies, social media, consumer trends, fluctuating levels of trust, and - in healthcare - patient empowerment have all contributed to the evolution of brand marketing in the past few years. 73 ” 42 What marketing teams are observing is that they don’t own the brand anymore. The broader publics have ownership, creating an altogether new and uncharted dynamic. Holmes agrees saying that “communication is not about sending out controlled messages. It’s about influencing a much broader environment and again, that’s where public relations comes in. 74 ” Many pundits argue that as the value of advertising decreases, marketing is left with a need for more authentic communications with consumers which, in turn, blurs the line between its function and PR. Spetner points out that “communication now has a chance to step up and in some cases is stepping up” referring to some large corporations like IBM, American Airlines and Cisco having a single Chief Marketing and Communications Officer who is responsible for both disciplines. Jon Iwata, head of both functions at IBM, explained the reasoning behind the combination within management. He said “the ability to put together everything from influencer work, policy thinking, employees, analysts, the media, the bloggers and of course the advertising and direct marketing worlds and have that be aligned so we speak with one voice to all these audiences against some strategic platform is the promise of it. 75 ” This mash up of communications and marketing functions is leaving the industry uneasy about re-organizations and movement within the corporate structure. Holmes believes that “when you add up marketing and public relations, what you get is public relations. 43 So I think in that sense, public relations will win.” But he also recognizes that in most large corporations, the senior-most person will likely take on the new role, and that person tends to be in marketing. This creates a conundrum that will now require marketing folks to quickly become PR savvy or PR folks to take advantage of this unique point and prove their value from a strategic standpoint. PR Pitfall A major pitfall for public relations has, and will continue to be, its metrics and measurement. Spetner explains that “when you get in there fighting for corporate resources, the ability to provide analytics is important. That will work against PR.” Major movements within the industry have sought to remedy this area but none have satisfied the demand for metrics like solid ROI and sales. Robert Grupp, president and CEO of the Institute for Public Relations, recently announced the organization’s rejection of advertising value equivalency as a measurement tool in the PR industry. He explained that “the use of ad value has distracted the industry from more valid measures of public relations' impact on business goals and objectives. 76 ” Industry experts in the arena of public relations metrics argue that the onslaught of social media has actually brought about a number of new measurement tools that can, in fact, be meaningful for the bottom line. Tim Marklein, Executive VP of Measurement and Strategy at Weber Shandwick, frequently presents to industry professionals on the importance of being able to tie PR efforts back to measureable outcomes like sales. In a 44 slideshow about linking PR to Sales, Marklein provided the follow snapshot of the current state of communications measurement 77 : What’s important to note is that PR metrics are not being translated into executive terms and CEOs are asking for more. Marklein argues that integrating measurement with strategy by bringing together metrics, data sources, tools and dashboards is an important way to bring value to PR. Overall, measurement remains top of mind for executives when decision-making about resource allocation occurs. In a shifting environment where multiple functions are now melding into one, proving value is critical for staying relevant and on top. Figure 2 – Snapshot of Communications Measurement 45 Summary of Findings After examining closely the evolution of the industry into its current state and beyond, several key findings are important for future consideration. Public engagement does not replace public relations Public engagement is a phrase that represents a new way of reaching consumers and a term that helps practitioners understand the current state of the industry. The new media landscape and complex environment in which consumers live each day, requires a fresh way of approaching communications. While public relations still builds and maintains relationships with stakeholders, public engagement recognizes that these stakeholders have drastically changed and expanded, as have the channels to reach them. Companies and agencies alike have struggled to understand the direction the industry as a whole is moving since there is not a single clear path. The ideas behind public engagement help to apply some organization to an overwhelming and chaotic atmosphere in which public relations professionals have a leg up on the communications industry but can’t quite define why. Simply put, public engagement is not the future of public relations, it’s happening right now. 46 Media relations is still relevant, if not more so than ever Public engagement embraces the idea that media has become social, meaning, users are more apt to get their information from selective sources and content is instantly shared, commented on or linked to via various channels including the PC, TV and mobile phones. Again, while online media is a big player in this industry particularly when it comes to companies creating content, traditional media is still just as important, creating a sense of credibility and wide-spread reach just as it always has. The Long Tail Theory helped explain this noting that there a still highly influential media outlets but also a plethora of smaller outlets that capture a majority of attention among consumers. Word-of-mouth has long been a powerful tool in communication and the theory behind public engagement recognizes that the spreading of this type of endorsement can happen at new speeds and on a variety of wavelengths due to the new complexity of the media landscape. The bottom line here is that social media is simple a new vehicle by which traditional media can be spread. PR has a unique opportunity to expand Because the lines between advertising, marketing and public relations are blurring, this new concept of public engagement elevates the role of the PR profession to a more strategic level that helps shape decision making from the top level, instead of simply being an afterthought. As consumers are becoming 47 more engaged in brands, relationships must be handled with care. This marks an opportunity for PR to step up to its true definition and provide the kind of insight necessary for building and maintaining these relationships. By the same token, however, PR has a unique challenge when competing with advertising and marketing functions to prove its value in terms that executives understand and care about. Striking a balance between this new level of responsibility and accountability will determine the future of the industry. While it’s no shock that this industry changes constantly, it’s evident that the shifts occurring now are truly transformational and will ultimately re-define the industry as we once knew it. Public relations has heavily relied on media relations as a way of reaching consumers. With the new technologies, we must brace ourselves for an even further explosion of channels in which to deliver messages. PR is no longer about placing stories in national dailies, but about engaging audiences to participate and take ownership of their involvement in a brand or company. Budgets within corporations and agencies are about to shift significantly, if they haven’t already done so, to favor public relations as advertising is becoming less of a focus and marketing is evermore close with the PR function. PR professionals must recognize this shift and embrace a new approach if they’re to succeed in moving with the tides. 48 Endnotes 1 Broom, Glen M. Effective Public Relations. 10th ed. Upper Saddle River: Pearson Education, 2009. 3. Print. 2 "Your Guide to Citizen Journalism." Media Shift. Ed. Mark Glaser. PBS, 27 Sept. 2006. Web. 18 Jan. 2011. <http://www.pbs.org/mediashift/2006/09/your-guide-to-citizen-journalism270.html>. 3 Princeton Word Net Web. N.p., - . Web. 22 Jan. 2011. <wordnetweb.princeton.edu/perl/webwn>. 4 Reh, John. "Metrics." Management About.com. New York Times, - . 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Web. 27 Jan. 2011. <http://mashable.com/2010/08/16/pr-social- media-future/>. Swerling, Jerry. Annenberg School for Communication & Journalism. Definition of Strategic Public Engagement. Annenberg School for Communication & Journalism. Team, Trefis. "Housing Is No Help But Do-It-Yourselfers Send Home Depot To $38." Forbes 24 Jan. 2011. Web. 8 Mar. 2011. <http://blogs.forbes.com/greatspeculations/2011/01/24/housing-is-no-help- but-do-it-yourselfers-send-home-depot-to-38/>. Vangrove, Jennifer. "Social Network Content Creation Has Plateaued ." Mashable. N.p., 28 Sept. 2010. Web. 27 Jan. 2011. <http://mashable.com/2010/09/28/forrester- social-technographics/>. Verlee, Elena. "5 reasons PR pros still need traditional media." Ragan Communications. N.p., 11 Feb. 2011. Web. 8 Mar. 2011. <http://www.ragan.com/Main/Articles/42716.aspx>. 58 York, Emily B., and Alejandra Cancino. "New trend: Consumers want it their way." The Olympian 5 Mar. 2011. Web. 8 Mar. 2011. <http://www.theolympian.com/2011/03/05/1566970/new-trend-consumers- want-it-their.html>. 59 Appendix I. Interviews Taylor Amaro, Sr. Global Client Knowledge Manager, Edelman Interview Date: 11/11/10 Interview Channel: In-Person List of preliminary questions:  In your words, what is Public Engagement?  Richard Edelman calls PE “the third way.” Can you talk a bit about how this isn’t replacing traditional PR but just offering a third dimension?  What is Edelman’s position on PE? How far along is the team on defining PE? What are the plans for launching this ‘initiative?’  What’s the history of PE at Edelman? Richard has been speaking/writing about it for almost two years now. Did the buy-in take that long or is it just a slow process in general  What clients are already incorporating the 7 principles of PE? How effective is it? What are the specific components of these campaigns that capture the ideas behind PE?  What kind of response from clients are you getting when incorporating PE components like the Action Consumer program? Is there any push back? How are you managing that?  What does this mean for the future of the industry? Future of Edelman? 60  What kind of employee outreach is Edelman planning to ensure the account teams truly grasp what PR is? Summary:  Amaro works closely with the team at Edelman that is currently working on a solid definition of public engagement, or what Richard Edelman calls “the third way,” implying that public relations now has this third dimension redefining the industry as a whole.  Edelman defines public engagement as “advancing shared interests in an interdependent world.” It’s the idea that public engagement is an outcome- based framework that focuses on the measurement of success.  Amaro pointed out that public relations is working in a business framework and therefore must be held to the same standards as practices such as marketing and advertising. The importance of integrating goals and objectives from all forms of communications is critical to reach a common goal.  Amaro outlined “Edelman Engage,” which is Edelman’s emerging practice that defines public engagement, provides insight into where it stemmed from and illustrated a clear path for future clients.  Finally, Amaro made it clear that professionals must understand that metrics like “impressions” no longer hold weight (nor did they ever) and that it’s critical to discuss the importance of ROI and how public relations can be attributed to sales impacts, if at all possible. 61 Mark Blevis, Associate Vice President, Fleishman-Hillard Interview Date: 1/18/2011 Interview Channel: Telephone List of preliminary questions:  Tell me a bit about what you do at Fleishman.  Has traditional media been put on the backburner?  What is the value of online communities?  Have you heard of public engagement? Initial thoughts?  What is your approach to metrics, ROI and analytics?  In terms of adding digital to campaigns, what’s the strategy there?  Is PR more than just an afterthought now? Thoughts on integrated marketing? Summary:  Blevis is based out of the Ottawa, Canada office and focuses primarily on public affairs and the digital components that make up the campaigns. He works in campaign finance, healthcare and government relations monitoring research and developing campaigns that demonstrate the best approach for the client to galvanize interest among the target audience.  Blevis firmly believes that while digital is quickly growing, it does not displace traditional media. Many firms relish in the idea of “going viral” but it’s not that simple. Taking a more integrated approach with age-old media relations tactics 62 as well as digital extras is how most companies are approaching campaigns today. Digital is not mature enough to function on its own and at the same time, without digital, traditional media would eventually get shelved.  When asked about the value of online communities, Blevis says that it’s all about becoming and remaining front-of-mind. In an example about Whirlpool, Blevis explained that the company went out of its way to not talk about their appliances. Instead, they launched a campaign that focused on social issues. By making less about the product and more about sponsoring a necessity or movement, consumers are likely to appreciate the effort and increase brand loyalty. This was Whirlpool’s way of staying relevant in the mind of consumers even when appliance might not always be their priority.  Blevis is a big proponent of making sure goals are completely understood before embarking on a digital campaign or determining metrics. In order to add digital to a campaign, it’s critical to understand the various tools at hand and how they each contribute to the goals. Facebook might be all the rage, but a lot of companies are finding out just how much time and energy must be invested to monitor conversations. It takes almost a full time employee to manage the account.  When it comes to online content, Blevis says that it must either be informative or entertaining. Creating an online vibe requires driving meaningful content, 63 maintaining relationships and responses as well as passion that is evident to the readers. If there is no hook to keep it buzzing, digital content dies immediately.  Blevis feels that since the tools of public relations are far more democratized now, the distance between the producer and the consumer has narrowed significantly. The interactions are more like an interpersonal relationship. The idea of mingling, dating, breaking up and finding a long term relationships are much like how PR is developing. The power that people have on Facebook and Twitter with videos and podcasts make their extended reach much more powerful. And it’s not about the 50,000 followers a brand might have, it’s about the 10 people who actually care deeply about the content and are willing to share it more broadly. Thomas Goff, Owner, Goff Consultancy (Former Deputy GM at Edelman) Interview Date: 1/14/11 Interview Channel: E-mail List of preliminary questions:  Please provide any highlights about your career that might be helpful.  Public engagement—have you heard the term floating around? Think a lot of people are trying to coin a term for this new movement in PR, what would you call it? Thoughts on it? 64  What are your thoughts on metrics and ROI when it comes to PR? Is it qualitative, quantitative—do metrics really apply and how can we make them meaningful to the finance guys?  What are you seeing in terms of adding digital to campaigns? What’s the strategy being used—shareable content, content-creating, etc?  Is PR more than just an afterthought now? Thoughts on integrated marketing and how that differs with the addition of social media to the environment?  What are your general thoughts on the direction of the industry? Tom’s Responses:  I am an independent PR consultant whose 2010 clients included Pacific Capital Group, Etorus, Everclean Services, Hertz Investment Group, iCrete, Texas A&M University, and Wolfgang and Gelila Puck. I have been in the PR business for more than 25 years – 10 years at Lockheed, 3 at ARCO, 3 at Global Crossing and 6 at your beloved Edelman where I was Deputy GM. Previous career highlights: Monk in the Vatican; UC law degree; army officer; editor at Fortune, New York Magazine and Esquire; literary agent (sold Top Gun to the movies).  I am aware of the Public Engagement movement which is an initiative to expand forms of participatory democracy, as described here: http://www.thataway.org/files/Core_Principles_of_Public_Engagement.pdf. I am fiercely supportive of Barack Obama and also know of the connection between the Public Engagement movement and his January 21, 2009 65 memorandum on open government: http://www.gwu.edu/~nsarchiv/news/20090121/2009_transparency_memo.pdf . I am not aware of its application to the PR profession ... but I can see that the movement’s strong transparency principle must by definition rely heavily on appropriate and effective communication with diverse publics – best done a PR professional.  I think that most metrics on PR are terribly flawed, particularly the astonishing numbers bandied about as verified web traffic. I’ve seen Edelman struggle with this for years but never felt the agency found a convincing solution to measurement of impact. Broader, more grounded counting of actual product sold in the wake or midst of a PR campaign is a more compelling measure for me than any estimate of readership or “favorable” placements. I do think, however, that readership figures are an insightful and reliable measure that actual work is being done by the PR team -- not a proper measure the effectiveness of that work, however.  Websites, which are digital, are now the principal communication flagships for every significant enterprise and the essential portal to critical information about a company. All forms of digital formatting, hosting, downloading and sending that further improve and expand access to that information (and allied collateral like sales sheets or discount offers) for key publics is worthy of consideration in the midst of a campaign. Facebook, Twitter and Google are obvious extension 66 and tactical platforms for any aggressive outreach or campaign - as are more subtle digital outreach tactics like killer apps for phones and pads and flashmob type event management. Among those publics, digital access to the media and all other significant clusters of potential third-party endorsers have the highest value for me and first call on the campaign dollar.  Corporate and reputation PR is surely an afterthought in many consumer companies because of the overwhelming portion of the budget necessarily given over to advertising and marketing. Understandably, however, marketing PR is increasingly vital and richly funded; the arrival of broad social media platforms like Facebook, Twitter and all the rest where product and brand affinities not only revealed but flaunted en masse will only strengthen that vitality.  Professionally, the essence of PR is sussing out and broadcasting a believable narrative. As you saw in class, too few of your classmates can create a coherent narrative and almost none can deliver a believable one. That is largely because they are functionally illiterate -- that means that they don't get it that they must find, read and understand the narrative that already exists regarding the product or institution they are representing. In our country, if you don't read the New York Times every day, you are a local yokel and never a player. You don't have to get printer's ink on your fingers -- iPad access is good enough, but you must jump into the pool to play. 67  Nonetheless, I think that marketing PR couldn’t be healthier - social media is a brand new and open playing field. I think that public affairs and financial PR consulting will always be, at best, a business for boutique agencies where insiders newly outside are briefly hired for occasional campaigns but never seem to last in their relationships with clients.  I think that internal PR staffs at public corporations, devoted to the sensitive business of financial and HR communications, will continue steady ahead without dramatic changes since regulation of business activity is endlessly increasing. However, these are mostly boring bureaucratic position that encourage horridly submissive behaviors and restrain creativity. And these lost souls are cyclically pulled into tragic soap opera because a company in trouble ruthlessly fires it PR teams first as the ship sinks -- always tragic because the PR staffs, up against the senior most managers daily, have long since drunk the Kool-Aid and actual believe the swill and spin they have been pouring out to the public will buy them loyalty when the iceberg looms. They invariably leave in incredulous tears. (See Company Men, the movie, quick before it leaves town.) I think that the best achievers and those among us most richly rewarded in PR will continue to be in marketing and product PR where creativity and thinking outside the box is cherished and rewarded.  One growing area in Professional PR that is also exciting, but not particularly lucrative, is philanthropy PR. It is, frankly, a playpen for trust babies whose basic 68 long-term needs are funded by family fortunes or rich spouses but it is wonderfully and personally enriching since tax laws in the U.S. and Europe require that registered philanthropies and charities actually be up to real and good business in improving the world. It would be nice, however, if promoting goodness and sunshine paid just a bit better than what society pays its garbage men and burlesque queens ... Monte Lutz, Senior Vice President, Digital West, Edelman Interview Date: 1/18/2011 Interview Channel: In-Person List of preliminary questions:  Richard Edelman calls PE “the third way.” Can you talk a bit about how this isn’t replacing traditional PR but just offering a third dimension?  In your opinion, what is the strategy behind applying digital to a campaign?  Are digital tools measureable and how does Edelman practice that? Summary:  Monte Lutz runs the digital teams in both the Los Angeles and Seattle offices of Edelman.  When determining the strategy behind digital campaign components, Lutz believes that the number one factor is knowing who the audience is. Once they are identified, creating compelling and relevant content and using ambassadors 69 to share it across platforms is the key to creating lasting conversations and relationships.  Edelman’s separate entity called StrategyOne focuses heavily on measurement and evaluation of campaigns. When asked how specific and relevant influencers are found, Lutz explained that they often use what’s called a “PERCH Score” to determine the level of influence a blogger or outlet has. This is made up of several factors including popularity (friends, fans, followers), engagement (how likely it is that when posts are made, people will comment, link or forward to it), relevance (in terms of geography and psychographics) and clout (online and offline influence).  Lutz also explained that they use Radian 6, a subscription-based service that allows firms to identify hot spots of conversation and where the discussions are stemming from. Israel Mirsky, Executive Vice President, Emerging Media and Technology, Porter Novelli Interview Date: 1/14/2011 Interview Channel: Telephone List of preliminary questions:  Tell me about what you do at Porter Novelli. 70  Have you heard of public engagement? Initial thoughts?  What is your approach to metrics, ROI and analytics?  In terms of adding digital to campaigns, what’s the strategy there?  Is PR more than just an afterthought now? Thoughts on integrated marketing? Summary:  In his current role, Mirsky works to empower the agency with specialties such as emerging media strategies. He strives to identify the most relevant technology add-on to existing and upcoming campaigns and believes in the empowerment of blogger relations.  Mirsky admitted that the term public engagement did not have a strong meaning for his team other than possibly what they call community engagement. Not community, as in neighborhoods and nearby organizations, but more the idea of bringing existing and new audiences closer to the brand altogether. Using active management to create a community of brand-loyal followers is critical, particularly in the digital realm.  In terms of measurement and metrics, Mirsky believes that there is an ongoing cycle of people wanting to make the CMO happy who in turn is trying to make the financial team happy. But he admits it’s not that cut and dry as the finance department wants effective ROI, but ROI in public relations will always be a metric that is as much art as it is science. It stems from the nature of the campaign as a whole, according to Mirsky. 71  Mirsky believes that today’s landscape makes communicating overwhelmingly difficult. Audience attention is completely fragmented by a million cable channels, websites and mobile devices, and not the least of which are private, online networks that we, as communicators, may never have access to.  It’s Mirsky’s opinion that the industry just doesn’t want to believe that marketing is far more expensive these days. The fragmented media landscape has caused expenses to skyrocket with the needs to spend across so many more channels.  ROI is better used in reference to a consumer journey, meaning throughout a campaign that is in flight. As a team pushes and pulls the levers of a campaign, ROI is a tool to see what parts of the campaign are creating the best results. This allows for adjustments along the way, rather than waiting until the conclusion and trying to pull one number for return. It has no meaning then as the flexibility is then gone.  There is no scientific formula for classifying which campaigns need a digital component. It’s a mix of competitive environment, brand profile and audience profile, among others. These are the factors that help to make decisions about where money is spent.  When asked about social media and the most effective tactics in this realm, Mirsky simply said that it’s a “basket of things.” Encouraging consumers to share content and get involved with strengthen the brand as a whole. The most primitive, and still widely popular, example would be the photo contest. The idea 72 of asking consumers to submit something of themselves, with some kind of incentive, creates brand recognition and loyalty that is then portrayed back into the community.  Mirsky believes we’ll continue to see things like the photo contest as digital tools emerge. More diversification of how they are incentivized is definitely something to keep an eye on.  Mirsky also believes that working together, coming closer together, but doing integrated campaigns is vitally important. He personally feels that integrated campaigns are rapidly becoming the only way to conduct successful marketing and communications. While this might not be true in every instance, many larger companies have a range of targets, especially younger and internet savvy consumers, who demand a more integrated approach. Brad Shaw, Vice President Corporate Communications, The Home Depot Interview Date: 1/6/2011 Interview Channel: Telephone List of preliminary questions:  In your words, what is Public Engagement?  Tell me about the Home Depot “How-To” Online Community? When was it launched?  What were the goals behind it? How was it to be measured? 73  What has the response been?  How does The Home Depot structure its communications? Is public relations at the table or an afterthought?  What other social media outreach is happening at the company?  What are your thoughts on the direction of the industry? Summary:  Shaw’s corporate communication team handles everything from traditional media relations, crisis managements, digital and social media and various events. Throughout the year, they host over 400 events in addition to managing corporate giving and community outreach.  Shaw believes that while most campaigns should have social media aspect, the idea of every account having someone dedicated to the role doesn’t make sense. He believes that at first, having a focused group of professionals who manager digital media on behalf of several clients is the best way to get industry expertise.  It is Shaw’s opinion that the majority of traditional public relations is a waste of time. Press releases and pitching the news media only results in incremental steps toward success. He believes in identifying the big, sweeping events that are newsworthy and drive the agenda.  Shaw also believes that PR professionals are fairly occupied on trying to justify time spent on campaign with metrics that don’t mean much. Arbitrarily assigning 74 numbers to the quality of coverage make for lengthy reports without much meaning. Smart corporations understand the importance of communications as a whole.  Shaw stated that some of the better companies have always had public relations at the management table, rather than as an afterthought to marketing and advertising. Social media has just emphasized the need for this, making PR an essential part of the marketing mix.  Shaw is firm believer that the best work comes from in-house, as The Home Depot does not currently have an agency-of-record. He does, however, believe in the strength of agencies during particular instances where complex issues such as proxy battles, crisis or major launches, call for the specialty knowledge that an agency can bring to the table. Don Spetner, Executive Vice President of Corporate Affairs, Korn/Ferry International Interview Date: 3/2/2010 Interview Channel: Telephone List of preliminary questions:  What’s happening to media relations? o Is it still a fundamental part of a communication plan? o Does it still act as a major tenet of public relations? o How are the changes in journalism affecting PR efforts when it comes to MR? 75 o Is MR more relevant during a product/company launch (to spread awareness) rather than on an ongoing basis?  What predictions do you have of the future of corporate structure as it relates to PR/marketing? o Is the role of PR expanding from media relations/blogger relations/social media to more marketing-centric approaches like direct-to-consumer strategies? o Is there a more integrated approach with all communication functions? (PR/Mktg/Advertising) o Where will most of the budget be in the future? Who will control? o What sectors are embracing these changes (technology? consumer products?) and which are not (legal, financial sectors?)? Summary:  Spetner believes there is a fundamental change occurring from when media used to be the gatekeeper of what was considered news, noting that this changed in the nineties when the internet was introduced. Before the internet, the only ways to disseminate information was the pay for advertising or get the news media to broadcast your message. Now, the gate is still there but nobody has to pay attention to it anymore.  He also explored the idea that perhaps the boom in internet outlets has decreased the influence of mainstream media and weakened the credibility of all 76 news out there. He also admits that media placements are still really important since they add credibility to a campaign.  All in all, as long as clients are paying for media relations, we’ll keep providing it. But there will be a shift taking place.  Spetner believes that a big shift started in 1999 or 2000 when websites got popular. First 7 years, the decline of newspapers was very gradual. And then it just fell off a cliff. He explains that we might be in one of those periods now with the MR function. It’s still bread and butter, people are still paying for it and it’s still the dominant, but it could be declining.  As a recruitment specialist, Spetner notes an observation that they are seeing a blurring and more power going to a communications function. He explains that the key to marketing before was generally advertising followed by direct mail and that there’s no question that advertising is diminishing in its power. Spetner believes, however, that as it declines in value, communication has a chance to step up and in some cases IS stepping up.  He also believes that the biggest problem for PR is the analytics. Most Chief Communication Officers do not have MBAs and when they are fighting for corporate resources the ability to provide analytics is important. Spetner believes that will work against PR

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Asset Metadata

Creator Sochowski, Brittney N. (author)

Core Title Public engagement, media relations and the future of the PR industry

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 05/03/2011

Defense Date 05/03/2011

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

Tag future of the PR industry,media relations,OAI-PMH Harvest,public engagement

Place Name USA (countries)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Floto, Jennifer D. (committee chair), Tenderich, Burghardt (committee member), Thorson, Kjerstin (committee member)

Creator Email brittney.sochowski@edelman.com,brittney.sochowski@gmail.com

Permanent Link (DOI) https://doi.org/10.25549/usctheses-m3856

Unique identifier UC1437988

Identifier etd-Sochowski-4447 (filename),usctheses-m40 (legacy collection record id),usctheses-c127-457077 (legacy record id),usctheses-m3856 (legacy record id)

Legacy Identifier etd-Sochowski-4447.pdf

Dmrecord 457077

Document Type Thesis

Rights Sochowski, Brittney N.

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