Changing PR's Game -- Just Do It
I read recently that ad agency Wieden + Kennedy had lost part of its Nike account. It was a big deal. Apparently the athletic footwear and apparel giant was dissatisfied with Wieden + Kennedy’s digital expertise and its online efforts to reach their target audience.
I suspect Nike’s move is a wake up call for both PR and ad agencies. In this day and age, press releases and 30 second ads are losing their utility. We are all grappling with the changing set of expectations set by consumers and clients alike. Similar observations were recently made in Bob Garfield’s excellent story in Ad Age, in a blog posting by Richard Stacy and in a piece by Matt Shaw, vice president of the Council of Public Relations Firms that a friend sent me.
Is the Term “PR” Still Relevant?
Shaw raises some interesting points that should embolden and unnerve PR agencies – depending on their place on the adoption curve and the level of their digital teams’ talent. In particular, Shaw cites a prediction made by a marketing consultant who said that the term PR firm won’t exist in 15-20 years -- that changes taking place will require a new name.
The number may be 15-20, but I am thinking months, not years. And one thing is for sure, once the dust settles, it won’t be called a new media firm either. By then new media and old media will just be media.
So why are firms like Widen + Kennedy failing to keep up? No question the demand for digital expertise is outpacing supply. But perhaps the problem is that we have not adjusted to the new boundaries or absence of boundaries that new media has created for PR, advertising and marketing.
This discussion is all too familiar territory for folks running about in the new media space. We regularly talk about the morphing of PR and the changing face of advertising. Clearly Nike’s move with Wieden + Kennedy demonstrates that the issue is far from resolved.
Now I can see why ad agencies are having a hard time with new media. It disrupts the entire economic model that they are used to. It requires radically new ways to interact with customers. It disperses expertise over an ever widening group of people. Executives everywhere are trying to keep up and, more importantly, monetize it.
For PR firms wanting a seat at the marketing and strategic table, these changes should be most welcome. It is not surprising that Shaw cites a recent study showing that headcounts in the public relations sector have increased 44 percent since 1990 – more than 3 times faster than that of advertising. Clients are demanding that firms understand transparency, relationship building and the importance of conversations.
PR’s bread and butter and advertising’s jam
Such demands are not new for us; they have been PR’s bread and butter for years. Viral campaigns, user generated content, and buzz marketing are all forms of what PR folks call “free” or “earned” media. But now our bread and butter has become advertising’s jam – something to spread on top of making commercials, building brands and buying ad time and space. I suspect the only real difference is that PR has historically charged less for these services.And so what will PR firms look like a few years out? Will advertising become PR’s jam? Or will we need a whole new food group metaphor? The easy part is defining what we do. Traditional media relations will only be a portion of the portfolio. Circumnavigating new channels of communications, embracing new technologies, managing greater and greater information sources, and corralling a widening number of spokespeople will become the bulk of our time and billable hours.
Monetizing these services will be more difficult. So will measuring the results. As corporate communications experts, we ourselves will need to do some “PR” or, depending on your perspective, advertising to help clients and management understand our potential. Old habits die hard – especially with the old guard. A hit in the Wall Street Journal still carries more weight.
If PR agencies and ad agencies continue to morph, who will get there first and be able to charge the most?
“Show Me the Money”
Maybe Cuba Gooding’s famous line in the movie – Jerry McGuire -- is instructive: “Show me the money.” Citing Matt Shaw's piece, if we can leverage our expertise, demonstrate results and figure out how to monetize these efforts, then we will be able, as PR veteran Lou Capozzi said, “add a zero to the (public relations) budget and call advertising a public relations tactic.”Let me get back to you.
Technorati Tags: Corporate Communications; PR; Advertising; Marketing; Nike; Wieden + Kennedy; Bob Garfield; Ad Age; Lou Capozzi;
Thanks for sharing,
Ed
http://www.CarolinaEventPlanning.com (Comment this)