Demonstrating the Value of PR
How do you measure the value of PR? That question crops up time and time again. Ketchum believes firmly in the importance of measuring PR's value, but we believe just as firmly in demonstrating it. Over the past year, ongoing economic challenges, heightened public skepticism and always-on media have converged to create an unprecedented opportunity for PR to show what it can do. Thus, this issue of Perspectives subtly poses a new question: How do you demonstrate the value of PR? Practicing PR consultants, corporate heads of marketing, and distinguished leaders from academia answer this question with insights on current practices as well as thoughts on how PR can demonstrate even greater value in the face of current challenges. Introduction
When we first conceived the theme of this issue, "Demonstrating the Value of PR," our initial thinking centered on showing PR’s return on investment during tough economic times. But as we began reaching out to contributors, it soon became clear that we needed to cover more. The value of PR is much bigger than ROI. While the difficult economy has increased focus on cost, parallel factors have made authentic communication with the public more critical than ever before. There has never been a time of more skepticism about almost every institution, including those in the private sector. Various audiences are using social media to demand real-time, transparent conversations. Many of the conversations about brands, companies and other institutions are happening without the involvement of those institutions. And they’re happening in a wide range of media outlets, among participants who are spread around the world. This issue of Perspectives looks at the ways PR can help develop earned and authentic communication and drive conversations, and features insights from experts within our agency and from outside, including Ketchum clients. Our "Voices of Influence" features Babson College President Leonard Schlesinger, who told a group of PR practitioners at the Council of PR Firm’s Critical Issues Forum last October that he believes PR can "shed light on the incredibly difficult situation" we face in the current environment. Here, he expounds on that idea. "Voices" also features Don Wright, professor of public relations at Boston University’s College of Communication. Don shares his thoughts on the need for PR to integrate with other marketing disciplines as well as other corporate functions. In "Viewpoints," four PR practitioners who are helping to develop and execute new and innovative approaches to today’s communications challenges respond to critical questions about the value of PR. Among them: How can PR appropriately tap into online conversations? And how can multinational companies compare PR results across countries? The "Roundtable" focuses specifically on how PR can prove its value in a tough economy, and as the economy recovers. Here, we have included thoughts from players in business as varied as food industry giant ConAgra Foods and financial services firm State Street, as well as from Council of PR Firms President Kathy Cripps and Ketchum and Ketchum Pleon counselors in the U.S. and Europe. Finally, read "Street Smarts" to find some interesting stats on how PR will contribute to growth of the overall marketing and communications industries. I sincerely believe you will find this issue of Perspectives useful as we all continue to wrestle with the challenges of the current environment. E-mail me at ray.kotcher@ketchum.com to let me know what you think. Best regards, Ray Kotcher | |||||||||||||||||||||||||
Voices of Influence
Back to School
School is where many business leaders learn their first lessons about PR’s role in business. So, this installment of "Voices" turned to two distinguished educators to hear their thinking on the value of PR in today’s business environment.
Babson College President Leonard Schlesinger answers a few questions about opportunities for PR in uncertain times, and Boston University PR Professor Donald Wright shares his thoughts on the value of integrating PR with other business functions. Both offer insights from experiences that extend well beyond the classroom.
Adding Value Through PR Integration
Donald K. Wright
Professor of Public Relations, Boston University College of Communication
How can PR appropriately tap into online conversations?
By Jon Bellinger
Vice President, Social Media Strategy, Ketchum
View Bio
Tapping into online conversations can be easier than most marketers might think. The key is to add value to those conversations, and an important component of that is for a brand to talk less about itself and more about what matters to the online community.
This is where a public relations approach can be highly effective. Too often, marketers want to come up with big, splashy campaigns and programs to try to drive online conversation about a brand, but that can come off as too promotional. Even more important, it can be difficult to gain traction for a new idea. Nothing a brand comes up with is going to be more interesting than what consumers come up with on their own. And tapping into an existing conversation can be much cheaper than starting a new one.
Nothing a brand comes up with is going to be more interesting than what consumers come up with on their own. And tapping into an existing conversation can be much cheaper than starting a new one.
At Ketchum, we track online conversations, or memes, to find out what topics are resonating with audiences and to look for opportunities to insert our clients into those conversations. Specifically, we try to figure out what the next page of the story could be if a brand got involved. Then we help the brand add to the conversation in a way that is sincere. This can play out as the brand offering a solution to a problem that is a concern for that online community or even simply showing that they "get" an issue the community is talking about. We’ve done this for a number of clients, ranging from Dr Pepper to Kodak, and we’ve built traction through traditional PR tools, such as press releases and phone calls to media.
Of course, it’s essential that the meme be one that is getting the attention of a brand’s target audience, and we can use Google Trends data to determine that. Also, it’s important to realize that the presence of a brand will seem more sincere if the brand is not repeatedly getting into a target’s conversation. A brand can tap into a few memes a year, but it should aim for different audiences each time so the messages don’t interfere with each other.
What's the most efficient way to reach an audience with PR messages?
By Nicholas Scibetta
Partner and Global Director, Global Media Network, Ketchum
View Bio
First and foremost, you need to put in the time and research upfront to truly understand who the target is and what media they consume. Ketchum's proprietary media usage survey, Media Myths and Realities, historically has shown a disparity between the media that professional communicators use to reach stakeholders and the media their audiences actually consume. Research can help close this gap by enabling PR practitioners to use the same disciplined approach to media planning that has long been standard for advertising — identifying key media and ranking them based on a target's preferences. By using this as a guide in developing a media strategy, we can be much more targeted in our outreach, which eliminates wasted effort (and ultimately reduces costs). For example, while developing the strategy for a campaign aimed at the C-suite, we found through our media planning approach that we could reach more people in our target audience through Good Morning America and BusinessWeek.com than through the Wall Street Journal, defying assumptions.
Research can help close this gap by enabling PR practitioners to use the same disciplined approach to media planning that has long been standard for advertising — identifying key media and ranking them based on a target's preferences. By using this as a guide . . . we can eliminate wasted effort.
A second step in efficiently targeting media is to make messages available in multiple formats, text, images, video, audio and various digital tools. This not only provides information in formats that various media outlets, from broadcast to bloggers, want to receive it, but it also reduces the work a PR team needs to do because all of the formats can live online. Rather than team members making hundreds of pitch calls, journalists seeking out information on a topic can easily find it, and everyday consumers can share it through social networking sites.
Finally, even when budgets are tight, it's essential to have an integrated media mix. One cost-effective way to deliver a message through multiple channels is to target outlets that drive the media agenda, such as wire services and outlets like TechCrunch, the Huffington Post and the New York Times. With people consuming media through multiple channels, it's critical that brands have an intimate understanding of what those channels are. They also must remember that simply pushing content out is not enough. Brands will have the greatest success delivering their messages only when those messages and stories are relevant enough and compelling enough to drive conversation and discussion.
How can PR determine which bloggers to work with?
By Michael Young
Senior Vice President, Access Communications
View Bio
Changes in the media landscape have made bloggers important contributors to how consumers receive information. But deciding which bloggers to target for a communication campaign is often challenging. While we can look to circulation for print media or to viewership for broadcast, no similar method for determining "reach" exists for blogs. It's easy enough to find blogs that cover specific industries or topics, and even rankings of blogs from the likes of Google and Technorati, but that's only part of the picture. Influence is the new currency. What really matters is how much influence a blogger has with the audience a client is trying to reach. This is where PR can add significant value through established skill in identifying and building relationships with influencers.
We evaluate influence by analytically scoring and ranking a blog's influence and putting each in the context of what the client is trying to achieve.
At Access, a separate Ketchum PR firm specializing in technology, we've developed a proprietary scoring model called the Access Blog Influence Engine, or ABIE, which we use to examine blogs from multiple dimensions — including influence, audience, topic and market segment. We've employed ABIE for various brand clients, ranging from Kellogg and Best Buy to Absolut Vodka. We start with two questions: First, how do we evaluate a blog's influence? Second, what is the best strategy for engaging that particular blog?
We evaluate influence by analytically scoring and ranking blogs and putting each in context of what the client is trying to achieve. We combine eight unique blog ranking engines to produce a single Influence Score for each blog. Once we know which blogs and bloggers are most influential, we gather additional information to help determine how a client might interact with them. Such information might include how bloggers talk about brands and companies in their postings or their behaviors with linking to articles on other Web sites. From these characteristics, we create an Engagement Score, which helps identify which blogs might be right for engaging on a particular topic.
ABIE is a sophisticated and proven way that PR can identify target-right bloggers, but the value PR brings to blogger relations goes well beyond that. PR practitioners can pinpoint not only which bloggers to target, but also how to target them. Good PR helps brands engage with bloggers in ways that are both meaningful and credible with a brand's ultimate target audience.
A Word With Leonard A. Schlesinger
By Leonard A. Schlesinger
President of Babson College
View Bio
In October 2009, Schlesinger moderated a panel discussion at the Council of PR Firms’ Critical Issues Forum. During that discussion, he made the following comment about public relations relative to the current environment:
"Peter Drucker was right when he said, ’Underneath all of the world’s problems is a raft of entrepreneurial opportunities.’ This represents a colossal opportunity for folks like you to shed light on an incredibly difficult situation that we all face, as citizens and as practitioners of the art and science of public relations."
In this Q&A, Schlesinger shares some additional thoughts on the opportunities he sees for PR.
Perspectives: You’ve said that the current environment holds great opportunities for PR. One of the hallmarks of this environment is uncertainty; at the same time, circumstances make it more important for all marketing disciplines to prove a return on investment. How do you think PR can best do that in the current environment?
Schlesinger: First, in an uncertain environment, the notion of relying on a well-planned business analysis for ROI for any marketing discipline is absurd. The results of any campaign will be uncertain unless you have a solid understanding of cause and effect.
The global economic meltdown is a clear example of people assuming they understand cause and effect when we don’t. We also don’t know the nature or pace of the turnaround. Subsequently, we don’t know how new marketing programs will be received by a public that continues to show a decline in trust of essential institutions. It’s all unknown.
The very nature of PR suggests problems like this are when the industry gets to shine. At a time when the public questions everything, PR can help re-establish trust through transparency and authentic communication. It can be a window into public sentiment through real-time monitoring of online comments and postings, and it can use what it learns to react quickly to changing situations. So, while we can’t rely on past performance being an indicator of future performance in the current environment, the best way for PR to show its value to business is to innovate in the face of uncertainty — and to be clear about that uncertainty.
Perspectives: Uncertainty could translate into hesitancy to support "innovative" PR campaigns. How should PR practitioners proceed when this happens?
Schlesinger: You start with base-level experimentation. You have to make small bets before you can make bigger ones. It should be looked at like stage venture capital, where you start with a seed investment to get a business idea off the ground. The first stage must be successful before investors are willing to provide additional funding. This approach needs to be clearly and consistently applied to innovation in any environment.
In the context of public relations, this might mean approaching the challenge of restoring confidence in business, for instance, by initiating an unprecedented campaign among a small audience before rolling it out to a larger one.
Perspectives: If the current environment represents an opportunity, why do you think PR is better positioned to seize this opportunity than, say, advertising?
Schlesinger: Two key reasons are the growing lack of trust in ads and the fragmentation of messages. There is a broader distribution of marketing spend across media than we’ve ever seen before, and PR is getting a bigger share of it. In part, that’s because traditional marketing isn’t as effective as it once was. People know that ads have been paid for by business, and their trust in business is low. What’s needed in this new environment is a way to rebuild relationships between people and business or government. Where traditional ads have less impact, good old-fashioned PR has a very powerful role to play. PR practitioners are in a better position to advise a CEO that words must be backed up by deeds and then consistency.
Perspectives: How do you think marketers in general might best use this time to strengthen relationships with consumers?
Schlesinger: The tougher the environment and the more uncertain the economy, the more important it is to stay close to your customers — through chats, visits, community dialogues, observations of uninfluenced behavior. Interacting and observing customer behavior closely is the kind of small-step experimentation that is key to program development.
Perspectives: You’re widely recognized for your research and consulting on service quality. In this environment, where trust in business is low, it seems that customer service should be a bigger focus than ever. How can PR or other marketing efforts support customer service?
Schlesinger: Before worrying about customer service, businesses need to come to recognize that if their associates don’t believe them, their customers never will. Many organizations will go out with marketing programs to impress their customer base, even when they know they have a disaffected workforce. Then they express great surprise at program failure. Management of human resources and customer service go hand in hand. The rules that lead to excellence in one function are directly applicable to outstanding performance in the other. Corporate PR, through internal communications, can help engage employees in HR efforts, but that will only be effective if the efforts are sincere and meaningful to employees.
Adding Value Through PR Integration
By Donald K. Wright
Professor of Public Relations, Boston University College of Communication
View Bio
As an integral part of corporate leadership, public relations has created immense value for companies past and present. From Arthur W. Page, who was a vice president in charge of public relations and a board member for AT&T in the 1930s, to Jon Iwata, who leads communications and marketing for IBM today, PR professionals have helped define and protect corporate images and reputations by working hand in hand with other business functions.
But too often, and even today, public relations or corporate communications has been a detached department brought in only after bad business decisions have become PR issues. Today, with the impact of the Internet and crises both inside and outside of corporations affecting business, PR is being brought in faster and more frequently.
Now is an ideal time for the leaders of PR departments to do a careful assessment of how they can operate more effectively by integrating with other functions. Then, they must help others within their organizations visualize the added value sustained integration could bring.
Long-term survival is a dramatic, yet real, place to start. When you look at the companies that have survived crises — such as Johnson & Johnson with Tylenol tampering in the 1980s — and the ones that have not — such as Andersen after Enron — often the ones that survived had a strong corporate communications function and a strong leader that had the ear of the C-suite, including the CEO. Because of that, public relations not only was in a position to help manage through crises, but the function already had been playing a vital role in considering public reaction to business decisions and building goodwill before crises hit.
Public relations also can add creativity to the way companies market products to consumers, objective thinking to the way they handle consumer complaints, compassion for the way they communicate with employees, or a long-term view on how they establish corporate policies.
So where should PR integration start? There is no one-size-fits-all approach. In some cases, PR can add the most value by integrating with marketing. In others, it should be closely aligned with strategic planning or some other function. It all depends on the culture and function of the organization and, to some extent, on the value to the consumer of the product or service that is being delivered.
Smart communications executives probably already know where their organizations would benefit most from sustained integration with PR. But convincing key decision makers is the major challenge. Often, senior managers still do not fully understand what PR does, or they think of it only as media relations. Corporate communicators who are getting the attention of C-suite executives because of recent crises must use this opportunity to expand this limited view.
We also must raise our own bar. To drive sustained integration, PR will need to demonstrate even more skills that help businesses achieve their goals. For instance, at Boston University, most of the communication graduates we’ve recently placed in jobs speak multiple languages and have lived outside the U.S. Multinational companies want them onboard because they understand not just the language, but also the culture of the countries those companies are doing business in. So, they can work more effectively with other business functions abroad. With this in mind, we should continually be asking ourselves, "What new skill could make PR more valuable to the organization?"
Just as business evolves to remain relevant to consumers, PR must evolve to remain relevant to business. In this way, PR leaders can be the catalyst for a boomerang value from sustained integration. Those who do the best job of adding value to other business functions will, in turn, help boost the value of PR, too.
Viewpoints
Many of the challenges facing today's communicators are the result of a vastly changed media landscape. Highly fragmented media have made attentive audiences more elusive while social media, specifically, have made critics and cynics louder. A critical voice can come just as easily from an activist from the other side of the world as from a disenchanted customer across town. And consumers look to one another to hear about products and services and the companies that provide them. Still, marketers need to disseminate their messages. How can PR help? Here, four PR practitioners answer these critical questions about how PR is addressing today's communications challenges:
- What's the most efficient way to reach an audience with PR messages?
- How can PR appropriately tap into online conversations?
- How can multinational companies compare PR results across countries?
- How can PR determine which bloggers to work with?
What's the most efficient way to reach an audience with PR messages?
By Nicholas Scibetta
Partner and Global Director, Global Media Network, Ketchum
How can PR appropriately tap into online conversations?
By Jon Bellinger
Vice President, Social Media Strategy, Ketchum
How can multinational companies compare PR results across countries?
By David Rockland, Ph.D.
Partner and Managing Director, Ketchum Global Research Network, and CEO, Ketchum Pleon Change
How can PR determine which bloggers to work with?
By Michael Young
Senior Vice President, Access Communications
How can multinational companies compare PR results across countries?
By David Rockland, Ph.D.
Partner and Managing Director, Ketchum Global Research Network, and CEO, Ketchum Pleon Change
View Bio
Consistency is key. As corporate communications and marketing executives find themselves leading or working on multinational or global teams, they need to be able to talk about PR successes with consistent terminology. They also need to understand, for instance, whether a successful media placement in the U.S. means the same thing as one in China. However, regional differences — from language and what regional PR teams value, to the ways consumers use media from one country to the next — can make consistent global measurement a serious challenge.
Many companies use separate vendors to track media results for each country or region, but without a clearly defined measurement approach, that likely won't yield easy comparisons. The most effective way to achieve consistency is through a single measurement system. The Ketchum Global Research Network (KGRN) recently developed such a system for a client operating in more than 60 countries worldwide. This company previously had invested in ad hoc reporting from various vendors across both regions and business segments before deciding to go with one top-line system.
Because media coverage is always being measured against the same factors, each piece of coverage can be assigned a score that means the same thing in any country.
The top-line system still uses multiple vendors but fewer of them, and now each vendor measures coverage using a single algorithm that KGRN created based on this client's measurement needs. The algorithm includes factors such as tone of coverage, inclusion of spokespeople and presence of key messages. Because media coverage is always being measured against the same factors, each piece of coverage can be assigned a score that means the same thing in any country. And all relevant coverage is translated to English. Cross-country data is housed on a single Web site, and members of the PR team can create customized reports highlighting specific metrics with charts and analysis.
This system is too new to talk about specific results, but at KGRN, we already see it as a valuable model for other international measurement systems. The single-system approach streamlines measurement and eliminates inconsistencies, duplication and overhead associated with multiple vendors, which also reduces costs. The tool can be customized for any client and can measure factors ranging from whether a print article included a photograph to how many conversations are happening online about a given subject. These factors can be applied to monitoring of specific industry topics or to a competitor's coverage. Perhaps most importantly, brands and corporations can use this consistent approach to quickly identify gaps in coverage (regional or otherwise) and to adjust their PR plans accordingly.
Roundtable
The Value of PR in Tough Times
The recent global economic downturn has meant everyone is watching spending more closely. In that environment, how do you prove the value of public relations alongside (or even over) other marketing disciplines? And as the economy begins to recover, how does that affect the perception of PR?
To answer these questions, we've gathered seasoned communications professionals from both the agency world and corporations. Here, they share their perspectives on how PR has fared during tough times and what's needed to maintain any boost the industry may have received during the recession.
Participants:
Frank Behrendt, Partner and CEO, Ketchum Pleon Germany, Düsseldorf
Joan Chow, Executive Vice President and Chief Marketing Officer, ConAgra Foods Inc., Omaha, Neb.
Kathy Cripps, President, Council of Public Relations Firms, New York
Ron Culp, Partner and Managing Director, North America Corporate Practice, Ketchum, Chicago
Hannah Grove, Executive Vice President, Head of Global Marketing, State Street Corp., Boston
Denise Kaufmann, Partner and Global Account Director, Ketchum, New York
Joachim Klewes, Senior Partner, Ketchum Pleon Germany, Düsseldorf
Perspectives: How can PR practitioners best prove the value of PR in tough economic times?

Frank Behrendt
Düsseldorf
View Bio
Frank Behrendt: PR is one of the most cost-efficient communication tools clients have at their disposal, in regard to exposure and reach. This will prove to be an invaluable asset for companies that have to cut their communications budgets due to the recession and, even more so, as market shares are shifting in a lot of industries. They cannot simply decide not to communicate, without risking losing customers.
The keyword here really is efficiency. Our measurement tool, Pleon Performedia, was the first to deliver detailed proof of the impact PR has on consumer spending. We have discovered that, given specific circumstances, the return on investment for PR can be five times that of TV advertising and three times that of print advertising. Therefore, it is very important to arrange for a smart integration of communication disciplines, with PR playing a significant role.

Joan Chow
Omaha
View Bio
Joan Chow: Reflecting tough economic times and recent expansion of social media tools and conversations, people increasingly look to their friends and other trusted resources when making purchasing decisions. PR efforts can help shape product opinions and encourage consideration through credible endorsement messages. For example, PR was a key component of ConAgra's "value" story, highlighting affordable, high-quality products through the use of a credible and trusted spokesperson (Supermarket Guru Phil Lempert). When the recession was at its peak, we generated more than twice as many impressions related to our value story as our closest competitor — and three times more impressions than our original goal.
We also have leveraged the power of social media, engaging influential bloggers as part of our brand marketing efforts to encourage a two-way dialogue with consumers. PR can show the value of these efforts by measuring share of voice, showing changes in product perceptions and attitudes, and plotting correlations to sales or market share.
With many publications reducing their staffs, PR professionals have the opportunity to play a significant role in shaping stories and communicating more marketing success stories. And PR efforts are often cost-effective in reaching multiple key audiences (employees, investors, analysts, consumers, media, customers) through events, press releases, interviews, blogs, etc.

Kathy Cripps
New York
View Bio
Kathy Cripps: From the perspective of the Council of Public Relations Firms, the question of value is more important to clients than ever. When budgets are trimmed, only those programs and ideas that accomplish priority goals will remain intact. Public relations agency professionals should "put themselves in their clients' shoes" to assess what's important to the client organization. In other words, discussing goals upfront, monitoring progress and tweaking plans as needed to deliver results all help to demonstrate value. Agencies and their clients need to agree on what "success" looks like.
Additionally, clients usually have several areas of responsibility to juggle. As valued partners, agency professionals should discuss priorities with clients and make recommendations from there. Then they should be willing to evaluate the outcomes in an honest and critical manner. The Council recently released a white paper titled "Creating Value: Public Relations and the New Brand Strategy." It's a strong, well-researched paper that helps to address the very question raised here.

Ron Culp
Chicago
View Bio
Ron Culp: The short answer is cost effectiveness. However, the more nuanced answer is that PR can deliver more meaningful results at a lower cost than other marketing disciplines — particularly in the current downturn. This recession unfolded at the same time that corporations were facing a greater need than ever to engage in dialogue with consumers and other stakeholders. That presents a tremendous opportunity for PR, because dialogue is at the core of what we do. So, to prove our value, we simply have to do what we've always done best, and we have to continuously demonstrate that we can keep up with the rapid pace of social media. We also have to show that the results of what we do can be measured.
Additionally, PR can offer great value in helping clients fill the gaps they might face with tighter budgets. In an environment that has required companies to cut back on everything from advertising to employee events, keeping brands visible and getting messages out to employees is still essential. This is where I think corporate PR, in particular, can be effective. It sounds simple, but when you communicate to the media, you also communicate to employees.

Hannah Grove
Boston
View Bio
Hannah Grove: If there has been any upside to the recent market turmoil, it is that companies have a much keener appreciation of the value of effective public relations and its impact on shareholder value, brand and reputation. The proof of this can be very effectively illustrated by numerous examples of companies where the lack of a cohesive PR strategy during the downturn was evident and damaging — from insufficient contingency planning around potential scenarios to yawning gaps between corporate developments and public relations teams that rendered the latter unable to effectively mitigate the issues. Conversely, there are equally abundant examples of companies that got it right and where it was evident that plans were well-honed and communications were exactly where they needed to be. The results of these success stories can be defined by share price appreciation, public opinion, client retention and employee engagement — all of which are essential to a company's success.

Denise Kaufmann
New York
View Bio
Denise Kaufmann: Based on my experience working with clients, there is a lot more attention lately on how PR, and communications in general, can support the business. So, to best prove value, there has to be some kind of link back to a company's business goals. In the current environment, employee engagement can be a particularly valuable link. So many companies have had to cut jobs and salaries, and keeping employees motivated is a big deal. Obviously, the way such announcements are handled internally has a real impact on employees, and public relations should advise in this area. Along with that, PR can help motivate employees through storytelling — sharing stories of the positive things a company has done for its employees. Many of our clients at Ketchum have had great success with this and have seen employees really rallying for the company even after job and salary cuts.
On the external side, we've seen clients asking how the reputation management or straight publicity side of PR brings value to the business. The key there is to understand upfront what PR is expected to accomplish; then, we, along with our clients, should set goals that have a measurable impact. That enables our client contacts to go back to their internal stakeholders and show them the value that we provide.

Joachim Klewes
Düsseldorf
View Bio
Joachim Klewes: PR practitioners can best prove the value of PR if they stop thinking in PR categories. In other words, "If the only tool you have is a hammer, you tend to see every problem as a nail." We must no longer think in terms of what we have to offer and which tools have been used in the past, but we have to think in "challenges" and "solutions." This approach calls for integrated thinking and planning and for cooperation across and between all communications disciplines — and even going beyond those disciplines.
For instance, in crisis situations it becomes blatant that some problems cannot be fixed simply with communications — e.g., in some cases, organizational solutions are needed or changes in a client's portfolio are necessary. It is our role as consultants to develop profound solutions for cases like these.
Perspectives: How do you expect the perceived value of PR to change as the economy shows signs of recovery?
Behrendt: The crisis will act as a magnifying glass for corporate reputations, as we will very clearly see who consumers will trust the most in its aftermath. Some companies took a severe hit to their reputations, while others survived mostly unscathed. Communication managers will have to ask themselves: Why is that? I think the answer to this question mostly boils down to whether companies did a good job with their public relations or not. Did they, for example, communicate adequate reasons for job reductions or restructurings? Did they get their message, their vision across? This sort of explaining is best done through PR, and some companies have learned this the hard way. I do not think they will make the same mistake twice.
Chow: Research has shown that by engaging in marketing efforts during a downturn, brands and companies are well-positioned when the economy recovers to succeed. Regardless of economic times, PR is a strategic marketing lever for all programming efforts. I expect that by continuing to show the effectiveness, power and impact of PR and social media efforts, these efforts will continue to be a key component of companies' marketing strategies even as the themes and programs evolve.
Cripps: Counsel from trusted advisers will always be in vogue. In fact, if you helped a client thrive and survive during the difficult times, you will likely be given more substantial opportunities as the economic situation improves.
As president of the industry trade association, I frequently have the opportunity to speak with clients and agency executives. We also conduct research and interact with other industry organizations. We often discuss the role and future of public relations. From my vantage point, public relations has become more crucial to all types of organizations in the last five years. Much of this importance and relevance has to do with the expansion of digital and social media and where it intersects with PR's sweet spot: real-time conversation and engagement. In a recent issue of the Council's online newsletter, the Firm Voice, in an article titled "Survey Says: Public Relations on the Right Track," we referenced a study by private equity firm Veronis Shuler Stevenson that further supports the industry's outlook.
Culp: Overall, I would say the tough economic situation has been positive for PR because C-suites have witnessed the cost-effective value of PR. We've seen significantly increased client spending on PR over the past year. Much of that has been because of dramatic increases in the need for expertise in digital and social media, but after digital has made the introduction, many clients have realized that a deeper PR program can have significant and measurable value. Now, they know we can deliver on cost per thousand and most of the other measurements they customarily assess. So, I expect PR to enjoy dramatic growth as the economic environment improves, because we've proven ourselves during the tough times.
Grove: Despite the progress in appreciating PR value that occurred over the last year or so, PR practitioners know more than anyone that memories are short. The focus, therefore, should be to continue to remind business and board stakeholders of the lessons learned and use these conversations to reinforce best practices and to remind them of value irrespective of market conditions. Effective public relations should be viewed as a core strength and competitive differentiator — both of which should be constants in any economic environment.
Kaufmann: It depends on the starting point. For companies that have long placed a high value on PR, the perception won't change. At the same time, I don't think things will return to the state they were in before the downturn. Some companies that had the money to spend before the recession experimented with multiple PR tactics, even when it was very challenging to predict results. As the economy recovers, there will be no more trial balloons. That's in keeping with the trend that companies are focusing only on those PR efforts that support the business. This will also hold true in digital and social media, where companies have recently escalated spending because those channels were more cost-effective than some other efforts. Recently, we've seen companies use social media tools, such as Twitter, to address customer service issues. Because these efforts have been successful, I believe they will continue.
Klewes: The awareness of the true value of an asset is often only recognized after it is lost. As an economic crisis always is a crisis of confidence, the lack of what we call "reputation capital" can become an increasing risk to the economic performance of a company. The crisis has shown that this affects especially those companies that cannot rely on an established recognizable profile.
That's why I expect the value of "reputation capital" to be rediscovered. This will hold true not only for companies that did not have sufficient reserves of trust or experienced the deterioration of it, but it also will show in the way companies with excellent stakeholder relations value thorough reputation management and corporate communications. Companies that experienced a decline in trust will have to quickly re-establish trust to keep up with those that have survived the crisis with bigger reputation reserves. In any case, the demand for active reputation management will dramatically gain in importance in the future.
Street Smarts
Five Facts on the Strength of PR
Even as economic conditions continue to be uncertain, there are plenty of signs and sentiments that PR will be a leading contributor to the growth of the overall communications industry in the years ahead. Here are five facts, supported by recent industry research, that point to the continued or rising value of public relations.
1. PR-driven social media tactics are highly effective, even when they are not easy to measure. Forty-seven (47) percent of marketing and PR professionals agree that user reviews and ratings on Web sites are very effective, but just 15 percent believe ROI for those tactics can be accurately measured.
Similarly, 46 percent say blogger or online journalist relations are very effective, but only 11 percent think they can be accurately measured.
- - 2009 Social Media Marketing and PR Benchmark Guide
2. Traditional PR skills are relevant for communicating in tough times. In facing the troubled economy, many PR professionals find their skills to be relevant, namely for enforcing transparency in business practices (70 percent) and helping the U.S. government communicate problems to the rest of the nation (52 percent).
- - Council of Public Relations Firms in Collaboration with Kelton Research, Jan. 1-Feb. 24, 2009
3. Alternative marketing efforts will lead overall communications growth. The communications industry is expected to be the third-fastest growing segment of the U.S. economy through 2013, led by alternative marketing segments, such as word-of-mouth marketing, which are expected to grow at an annual rate of 12.6 percent. Total communications spending is expected to grow 3.4 percent annually from 2009 to 2013.
- - "Communications Industry Forecast," August 2009, Veronis Suhler Stevenson, a leading private equity firm dedicated to the information, education and media industries.
4. PR spending has a strong growth outlook. Public relations spending is expected to increase by 17 percent by 2016, compared with a 6 percent increase in advertising spending.
- - PR News/Burrelle's Luce
5. PR will be more important to overall marketing in 2010. Sixty-four (64) percent of marketing and PR professionals believe PR will become increasingly important in the marketing mix in 2010.
- - Vocus Inc. survey of 1,800 marketing and PR professionals, November 2009
Bios
Frank Behrendt
Partner and CEO, Ketchum Pleon, Germany
Frank Behrendt has more than 20 years of experience in communications and is responsible for Ketchum Pleon Germany, which has offices in eight major cities. Prior to becoming CEO in 2006, Frank was responsible for Pleon’s German headquarters office in Dűsseldorf and was head of the European Consumer Goods Practice. In 2001, he joined ECC Kohtes&Klewes, which merged with the European Brodeur Agencies in 2004 to become Pleon.
Frank studied at the German School of Journalism (DJS), Ludwig Maximilian University in Munich. He graduated as communications manager, DJS. Parallel to his studies, he cleared a practical semester at BILD editor’s office and at the PR Department of Dornier/Daimler-Benz. In 1986, Frank joined the young agency Kohtes&Klewes as an editor and later moved to Stein Promotions/BBDO as a managing director. After holding leadership positions at Universal Music (managing director of Universal Family Entertainment) and RTL Television (senior vice president of marketing and merchandising), he returned to Pleon.
Jon Bellinger
Vice President, Social Media Strategy, Ketchum, New York
Jon Bellinger is an interactive strategist and is an expert at identifying, analyzing and converting emerging Internet memes and organic online user behavior into strategic online PR programming. Jon is fluent in multiple online venues, including search and search marketing, multiplayer gaming, online communities, social networks, wiki platforms and more. He is also fluent in digital content creation, and has a strong background in animation, graphic design and filmmaking from both a branded and user-generated content standpoint.
Dedicated to listening to, translating and synthesizing the many voices of the Web, Jon has created successful, measurable social media programs for a range of clients, including Nokia, Dr Pepper, 7UP, Häagen-Dazs, Wendy's and other brands.
Previously, Jon worked for the national CBS Evening News, was a talking head on the TV show "Best Game Ever" and played with his band in New York City.
Joan Chow
Executive Vice President and Chief Marketing Officer, ConAgra Foods, Omaha, Neb.
Joan Chow joined ConAgra Foods as executive vice president and chief marketing officer in 2007. In this role, she is responsible for leading ConAgra Foods' global marketing team, including marketing services, strategic marketing, integrated marketing, digital/interactive marketing, customer marketing, consumer insights and multicultural marketing. Joan was named a Brandweek Marketer of the Year for 2009. ConAgra is a Ketchum client.
Joan takes an in-depth focus on marketing for ConAgra Foods' brands across the portfolio. Her goals are to build stronger advertising creative materials, effective media plans, sustainable customer linkage and a strong return on marketing objectives. In 2008, Joan's team launched ConAgra Foods' health and wellness platform, StartMakingChoices.com: an online tool for consumers to manage and track their health to live a balanced life.
Prior to joining ConAgra Foods, Joan was senior vice president and chief marketing officer of Sears, Roebuck & Co. Joan began her career in 1986 at Johnson & Johnson. She earned her MBA from the Wharton School of the University of Pennsylvania and her bachelor's degree in linguistics from Cornell University.
Kathy Cripps
President, Council of Public Relations Firms, New York
Kathy Cripps runs the Council of Public Relations Firms, the trade association that represents the interests of public relations firms operating in the U.S. (Ketchum is a member.) Before joining the Council, she was responsible for growing the U.S. healthcare business for Hill & Knowlton, and earlier for founding and serving as president and COO of SCIENS Worldwide Public Relations (a division of Nelson Communications). Kathy has held senior positions at Creamer Dickson Basford (now Magnet Communications) and Burson-Marsteller. She began her public relations career with The Nestlé Company and Farberware, the cookware manufacturer.
Kathy served on the board of PRSA's Counselors Academy and was its 2000 chairman. She was on the board of the Healthcare Businesswomen's Associations and, as a founding member of the Council of Public Relations Firms, also served on its board. She is currently on the board of the Lagrant Foundation. Kathy has been recognized as a Public Relations All-Star by Inside PR and named to the "Top 50 Healthcare Executives" list by PRWeek. She holds a BA in nutrition from Queens College and an MBA in marketing from Fordham University.
Ron Culp
Partner and Managing Director, North America Corporate Practice, Ketchum, Chicago
Ron Culp is a Ketchum partner, head of the agency's Corporate Practice in North America, and managing director for Ketchum Midwest. With more than 35 years of communications experience with Fortune 500 corporations, government and agencies, Ron has held senior-level PR positions at Pitney Bowes, Sara Lee, and Sears, where he headed PR, community relations and government affairs. Prior to joining Ketchum, he opened and served as managing director of the Chicago office of Sard Verbinnen and Company, a leading financial communications firm.
Ron started his career as a journalist and later worked in New York state government before joining Eli Lilly and Company, where he began his corporate communications career.
Hannah Grove
Executive Vice President, Head of Global Marketing, State Street Corporation, Boston
Hannah Grove is an executive vice president and head of Global Marketing for State Street Corp., a leading global provider of financial services for institutional investors. She leads the brand, media relations, employee communications, creative, content, and event management teams across the enterprise. Under Hannah's leadership, the global team supports the company's revenue growth, customer acquisition and retention, and serves to positively influence all constituencies' understanding of State Street. State Street is a Ketchum client.
Prior to joining State Street in 1998, Hannah was marketing director for the Money Matters Institute — a collaborative between the United Nations and the World Bank that sought to foster sustainable development in emerging economies.
With dual citizenship in the U.K. and U.S, Hannah owned and operated a public relations company in London, England, early in her career. She also was previously communications director for CNN's World Congress event in Washington, D.C.
Denise Kaufmann
Partner and Global Account Director, Ketchum, New York
Denise Kaufmann currently serves as the global account director for FedEx, one of Ketchum's largest global clients. She oversees a comprehensive global communications effort that includes corporate reputation management, employee communications and influencer outreach programs.
Denise previously served as the firm's director of client services for Greater China from 2001 until 2004. She joined Ketchum in 1997 and was a vice president/group manager in Ketchum Chicago's Brand Marketing group. While there, she managed the global integrated marketing and public relations program for Lions Clubs International, the world's largest not-for-profit service organization. As the global account director, she managed ongoing public relations activities for Lions Clubs in more than 18 countries. In addition, Denise coordinated outreach efforts for the organization's $300 million foundation working with corporations, NGOs and other international health agencies around the globe.
Denise also is experienced in providing senior strategic counsel in a number of specialty communications areas, including employee communications, crisis and issues management, consumer health education, corporate social responsibility, environmental awareness and brand building programs.
Joachim Klewes
Senior Partner, Ketchum Pleon Germany, Düsseldorf
Joachim Klewes is co-founder of Kohtes&Klewes Kommunikation, which is now Ketchum Pleon. He counsels some of the firm's largest international clients and organizations and has expertise in the fields of strategic communications, including corporate communications, board and CEO positioning and coaching, crisis and issues management, public affairs and change management, as well as organizational development.
Joachim holds an honorary professorship at the Heinrich-Heine-University in Düsseldorf and is founder and senior partner of opinion research institute Com.X. He is involved in major research projects within the scope of population and target group studies, complex evaluation studies to the point of performance reviews of communication instruments, and campaigns. Joachim also is a frequent writer and editor of various books about marketing and communications. His latest book, Reputation Capital: Building and Maintaining Trust in the 21st Century, was published in November 2009.
Among other agency experience, Joachim previously was a board member of Porter Novelli International, New York, and board member and European president of Edelman Worldwide. He also launched a second agency project, komm.passion group, which grew to 100 employees before he returned to Pleon.
David B. Rockland, Ph.D.
Partner, Ketchum; Managing Director, Ketchum Global Research Network; CEO, Ketchum Pleon Change, New York
David Rockland is a partner at Ketchum and serves in various leadership capacities. As managing director of the Ketchum Global Research Network, he is responsible for overseeing the agency's research products and services, as well as developing innovative approaches to public relations research and measurement for clients around the globe. He also is CEO of Ketchum Pleon Change, the agency's employee engagement and change management business.
David previously owned The Rockland Group, a firm that specialized in environmental issues management and marketing, which he sold to Roper Starch Worldwide in 1998. He managed the environmental and public relations practices for Roper Starch Worldwide before joining Ketchum in 2000. David also has a breadth of experience in public policy, including work in previous positions with BHP Copper and Times Mirror Magazines.
Leonard A. Schlesinger
President, Babson College, Wellesley, Mass.
Leonard A. Schlesinger became the 12th president of Babson College on July 1, 2008. He joined Babson from Limited Brands, based in Columbus, Ohio, where he served in executive positions since 1999, most recently as vice chairman and chief operating officer. Earlier in his career, he was executive vice president and chief operating officer at Au Bon Pain.
His academic career includes 20 years at Harvard Business School, where he served as the George Fisher Baker Jr. Professor of Business Administration, leading MBA and executive education programs. Leonard is well-known for his pioneering research and publications on the "Service Profit Chain." He also was architect and chair of Harvard Business School's MBA Essential Skills and Foundations programs. After his time at Harvard Business School, he served as a professor of sociology and public policy and senior vice president and counselor to the president at Brown University.
Leonard has lectured and consulted on service quality and customer satisfaction for more than 100 major corporations, nonprofit organizations, governments and international leadership organizations around the world.
Nicholas Scibetta
Partner and Global Director, Global Media Network, Ketchum, New York
As global director of Ketchum's Global Media Network, Nicholas Scibetta provides senior strategic media planning counsel and placement for clients across the agency's network. He has developed and managed strategic, high-profile programs for clients including the Russian Federation and its G8 Presidency, Troika Dialog, Oprah Winfrey Leadership Academy for Girls, Mo Ibrahim Foundation, Wyeth, Frito-Lay, Aetna, Johnson & Johnson, Alka-Seltzer, and Domino's Pizza.
Nicholas also founded and serves as editor of In The Know, a national media placement newsletter that features trend analysis and behind-the-scenes interviews with producers and journalists from the nation's agenda setting media outlets, and ITK NewsFlash, which combines comprehensive analysis of sought-after media outlets with top-of-the-day news items.
Donald K. Wright, Ph.D.
Professor of Public Relations, Boston University, Boston
Donald K. Wright, Ph.D., is professor of public relations in the College of Communication at Boston University, the nation's first degree-granting institution in the public relations field. He is one of the world's most published public relations scholars and is an internationally known professor, author, speaker, researcher, adviser, and corporate communications consultant. In addition to teaching, conducting scholarly and applied research, and lecturing in 28 countries on five continents, he has worked full-time in corporate, agency and university public relations, and has been a corporate communications consultant for three decades.
Since 1992, Don has directed the Chicago-based Public Relations Executive Forum, an annual, professional development seminar program designed especially for high-performing, mid-career corporate communications and public relations managers who report to senior corporate communications officers. He also is active in various professional PR organizations, including the Arthur W. Page Society and the Institute for Public Relations.
Michael Young
Senior Vice President, Access Communications, San Francisco
Michael Young leads the technology and business-to-business practice group for Access Communications, a full-service public relations agency that specializes in technology. He is responsible for anchor accounts including FICO, TRUSTe, Digg, Trend Micro and WMS Gaming. He is a co-founder of the firm's Social Media Practice and an architect of the Access Blog Influence Engine. Access is a business unit of Ketchum and operates as a separate brand.
Michael also leads the firm's Media Analytics Group, which provides clients with a full range of PR measurement, analytics and accountability resources. He blogs on the subject of measurement at The PR Measurist.
Prior to joining Access, Michael was managing partner of Agency Analytics, LLC, a consulting group he co-founded focused on helping clients and agencies maximize the return on PR investment. Previously, he served as senior vice president and technology practice leader in the Chicago office of Porter Novelli. Previous PR agency experience includes leadership positions as vice president at Ketchum Chicago and vice president at high-tech PR boutique Tech Image, Ltd.
