PR Creates Web Traffic, Survey Finds
PR is considered more important than advertising in setting up a successful dotcom launch. Sixty-five percent of e-businesses believe there is a strong relationship between
press coverage and site traffic, and 57% say PR is more important for dotcoms than for traditional businesses. These are among the findings of an international survey of 75 dotcoms
in 10 countries conducted by Global Financial Communications Network, a network of 11 PR agencies worldwide.
The survey also found that 49% of the companies have decided to increase their PR budgets as part of an ongoing communications program. Dotcoms in the U.S. reported they spend
60% of their communications budget on PR.
There are wide variations in perceptions about the importance of PR and the allocation of capital for communications programs among dotcoms in different countries. In Hong Kong,
dotcoms spend 90% of their communications budgets on PR, while in Spain 30% of the dotcoms said they didn't use PR at all when they launched.
Copies of the survey can be received by emailing a request to [email protected]. (Mosbacher, 212/888-6115)
M&As Are Good for Organizations
Most companies consider their most significant merger integration in the last decade to be a success, even if there were people conflicts and downsizing issues. That's one of
the conclusions in a report issued by The Conference Board, based on a survey of 134 companies that had M&A experience since 1990. The survey examined pre- and post-transaction
expectations of employees.
The sharpest pre-merger differences perceived by employees emerged in their views of top management leadership and decision style. Prior to the merger, almost 90% of
participants reported contrasting leadership styles between buyers and sellers, along with marked variations between parties in communications.
The survey found integration teams created to find ways to blend two organizations were generally effective. "The most important finding is that success or failure of the merger
is unrelated to initial differences," says Lawrence Schein, senior fellow of the capabilities management and HR strategies department of TCB. "For example, dissimilarity in
leadership style does not guarantee unsuccessful merger integration." (Schein, 212/759-0900)
Game Show Adopts Ketchup, the Health Food
America's longest-running TV game show, "The Price Is Right," for the first time in its 28 years, has picked Heinz Ketchup as a product in its pricing games, and the ketchup
manufacturer hopes that host Bob Barker will promote the product for its health benefits.
Heinz has been emphasizing the health benefits of lycopene, a powerful antioxidant (PRN, Oct. 2), since late 1998, when studies reported that a diet rich in lycopene may
lower the risk of certain life-threatening diseases.
"Naturally, we are hoping 'The Price Is Right' takes the health benefits of lycopene into account when setting the price for Heinz Tomato Ketchup on the show," says Brendan
Foley, General Manager-Ketchup for Heinz North America. "After all, everyone knows that good health is priceless." (Heinz, 412/456-5778)
- 30 -
Some promotions just blow up in your face.
That's what happened to LA business law firm Quinn Emanuel when it hired a PR firm to come up with a campaign to promote its services. The agency hit upon the idea of sending
out paperweights that look like hand grenades.
You know what's coming - they looked waaayyy too real. The bomb squad of the Santa Clara County Sheriff's Office was called out twice by recipients who panicked when they
saw the faux grenades.
Steve Madison, a senior partner with Quinn Emanuel, told the San Francisco Chronicle the consultant had described the promotion as "youthful, kind of aggressive, edgy...
It sounded a lot different than it turned out to be."
To handle the fallout, Quinn Emanuel has offered to reimburse the sheriff's office for the bomb squad's time, and has contacted everyone who received a paperweight and offered
to send a courier to retrieve them. Madison declined to name the agency that came up with the idea, but said the law firm had terminated the relationship.