Telvista was pleased with the public relations that Taper Communications had been providing for the firm the last few years. But with the economy still refusing to get up --
having falling down more than three years ago -- something had to give.
So Telvista let Taper go and rolled that budget in-house under the purview of PR manager Tom Womack, who was brought in last November and now wears several hats at Telvista,
which provides a wide range of technical support to computer companies including CompUSA and Toshiba. Womack steers the company's internal and external communications, helps out
with advertising and marketing programs and, perhaps most important, manages media relations. "It's not a level I can't handle," he says. Management has assured Womack that "if I
get too weighed down they would bring in a freelancer" to assist with public relations and marketing overflow.
Telvista's decision to bring public relations in-house is one option for companies that are looking to cut costs but are still reluctant to get rid of PR altogether. It's often
less expensive to have a PR director in-house rather than hire an outside agency, which puts agencies at a disadvantage in a downturn.
Although the markets have been on the upswing lately -- and ad dollars have been flowing a little more freely, creating more editorial space in newspapers and magazines -- PR
executives on both the agency and corporate sides continue to scramble to do more with less. Despite the sluggish economy, companies still need to market their products and
services, and communications still has a vital role to play in that.
Richard Laermer, founder of Los Angeles-based RLM Public Relations and co-author of "Full Frontal PR" (Bloomberg Press), says it's important to develop new strategies for
dealing with the downturn, "but you also have to get your hands dirty and not just talk about strategy but tell clients you're going into the trenches." He adds that creating
fancy reports on behalf of the client "are a waste of time when the clients are paying you to be on the phone, pitching, pitching and pitching." Laermer's clients include Barnes
& Noble, Fuji Film and Mandalay Entertainment.
For Ellen Slaby, PR director of Centra Software, which provides computer software for the e-learning market and whose clients include American Express, Coca-Cola and
DaimlerChrysler, taking time to build relationships with members of the media is crucial in the current climate, which she describes as the "worst" time in years to be in PR.
"You want it so that they'll take your phone calls and won't blow you off, especially now when things are really difficult," Slaby says. "If you have a good relationship with a
reporter he or she may not run the story this time, but they will take a look and possibly run it the next time."
It's one thing to have a reporter lend you an ear. But with time and money at a premium these days, communications executives have to make sure they shoot straight once they
get a reporter to bite.
PR executives are "spending too much time over-promising and under-delivering and then they're surprised when they get fired," says Michael Kempner, president-CEO of The MWW
Group, a full service PR firm whose clients include Amazon.com, McDonald's and Nikon. "The challenge for PR is how to get people to see you as necessary spending and not
discretionary. So in good times and bad it's important to merchandise the value of your success...Too many programs sound good on paper but don't deliver tangible results to the
client. PR people need to measure PR dollars and ROI."
Another strategy: being more selective with new hires. "Three years ago people were looking to fill seats, now it's much more selective," says Matthew Della Croce, senior VP of
financial communication in the Corporate Practice at Ogilvy Public Relations. "Clients are demanding more of senior consultants' time so you need to bring in people who are strong
on tactics and can develop strategy."
Indeed, hungry freelancers are another resource for communications execs dealing with a lean economy. "Many PR people laid off still have a lot of clients," Laermer says. "And
these are people who are reacting to clients and not rolling their eyeballs, saying the client is a pain in the butt."
The anemic economy has altered PR management in other ways, such as a more aggressive strategy with the media and less reliance on creating "awareness," a PR buzzword whose 15
minutes are nearly up. "The days of 'increasing awareness' are long gone," says Roger Roser, president-general manager of Eisen Management Group, a full service PR agency that
launched in 2001. Clients include Cadence and the March of Dimes. "PR people need to be wearing more of a journalism hat and stop swallowing the blue pills that CEOs are feeding
them."
He adds that PR people should be more cognizant of the messages they're sending to media. "Lose the lingo, the gobbledygook and the alphabet soup," he says, referring to the
tendency of PR people to include nonsensical information in press releases. "Try to put yourself in your client's shoes."
Contacts: Matthew Della Croce, 212.884.4064; [email protected]; Michael Kempner, 201.507.9500; [email protected]; Richard Laermer, 818.613.6669; [email protected]; Richard Roser, 513.398.2800; [email protected]; Ellen Slaby, 617.510.3884; [email protected]; Tom Womack,
972.312.5705; [email protected]
Growing Your PR Business in a Down Economy
Increased expectations combined with a slackening economy makes for a bear of a time for communications executives. So, how does an agency or PR department not only survive,
but also actually thrive and grow in a deflationary environment? Here are a few pointers via Los Angeles-based RLM Public Relations.
#1 It is not all about us:
During 2001, like many firms RLM had to quickly cut costs and contract staff, move offices, and diversify our client base. Through it all, we reminded ourselves that it really
is not about us. We stayed focused on the clients and let our internal issues stay internal. Client service wins and keeps the account.
#2 Diversify quickly:
Good PR is good PR. When many of our technology and new media clients ran into trouble, we recognized that the skills we developed had broad application in other industries. So
we pitched projects to industries in need.
#3 Feel (current, new and prospective) clients' pain:
Clip books no longer equal results (they never did). Recognize that clients have fought tooth and nail for every marketing dollar, and the VP of marketing is on the hook to
show the board real impact on the bottom line. RLM focuses on delivering measurable value for every PR dollar our clients spend. Of course we provide clip reports, but we also
spend the (non-billable) time to understand our clients' business challenges and how they measure results, then fit into that framework.
#4 Invest in doing it better and more efficiently:
RLM contracted with a software developer to build a proprietary account management system to ensure better communication with clients and better project management. Our clients
have real-time access to updates. They don't need to ask, "Where are we with the project?" They know.
#5 Hire great people:
In a down economy amazing talent is available and looking to be a part of something where they get as much as they give. RLM has attracted and retained terrific people, who
have helped grow our capabilities significantly.
Sources: Richard Laermer CEO and Brian Flynn COO of RLM PR; Laermer is the author, along with Michael Prichinello, of "Full Frontal PR: Getting People Talking About You, Your
Business or Your Product" (Bloomberg Press, 2003).